Dáil Éireann Debate, Thursday - 7 April 2022
174. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which the level of investment in jobs here continues to keep pace with other jurisdictions; and if he will make a statement on the matter. [19108/22]
View answerThe Economic Recovery Plan (ERP) published in June 2021, sets out the Government’s medium-term economic plan to rebuild Ireland’s economy. As well as committing to a package of supports and investments to assist enterprise recovery, the Plan outlines a medium-term policy framework to rebuild sustainable enterprises, encourage job creation and sustainable and balanced post pandemic growth.
The ERP set a target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. This target has already been exceeded, according to figures released by the CSO’s Labour Force Survey in February of this year, indicating the strength of Ireland’s recovery and the improvement in the labour market in Ireland. The employment rate for those aged 15-64 has rebounded from the pandemic to 73.0% in Q4 2021 compared to 67.0% in Q4 2020 and has exceeded the employment rate of 70.1% in Q4 2019. Similarly, the unemployment rate fell over the course of 2021 as the economy recovered. It is now approaching the pre-pandemic rate of 4.5% as the recovery continues.
Projects funded under the National Recovery and Resilience Plan (NRRP) are integrated into the Economic Recovery Plan, and reinforce the Government’s approach, which is focussed on supporting recovery and job creation, advancing the green transition, and accelerating and expanding digital reforms and transformation. The initial allocation under the NRRP is €915 million, with a further allocation to be made in 2023.
Since the beginning of the pandemic, Government has been committed to helping the sectors and workers most impacted and has invested heavily in order to stabilise the labour market. Schemes such as the Employee Wage Subsidy Scheme (EWSS), the Covid Restrictions Support Scheme (CRSS) and the Pandemic Unemployment Payment (PUP) compare very well internationally and have been extended well beyond their original end dates. Since its introduction, the EWSS, an economy-wide support for enterprise, has made €6.7bn in payments to support over 50,000 employers and nearly three quarters of a million employees. Under the CRSS €727m was paid to 25,700 to businesses impacted by COVID-19 restrictions. As of the beginning of February 2022, over €9.1 billion has been paid out through the PUP.
The latest iteration of the national employment strategy – Pathways to Work 2021-2025 – will help unemployed people get back into employment through intense activation, upskilling and reskilling opportunities, and engaging with employers. It will have an overall target of over 100,000 additional caseloads per year, by expanding the caseload capacity of the Public Employment Service, reducing the risk of labour market scarring and long-term unemployment. There will be a particular focus on youth unemployment and working intensively with young people at greater risk of long-term unemployment, in recognition of the disproportionate effect of the pandemic on young people.
In addition to the work already underway, the Government is looking to prepare for the economy of the future. On 1 March 2022, Cabinet agreed to the development of a White Paper on Enterprise Policy in 2022, led by the Department of Enterprise, Trade and Employment. The White Paper will set out set out an ambitious medium- to long-term direction for enterprise policy in response to challenges, opportunities and new drivers of growth catalysed by the Covid-19 pandemic, new economic and geopolitical realities, and an increased urgency to accelerate the decarbonisation of industry.
In so doing, the White Paper will articulate what needs to be done differently to realise this vision and to set out clearly the risks to be faced (i.e., energy, skills availability, technological change, etc.) and the policy choices and trade-offs that will arise in order to maintain high-quality jobs, to protect the elements which make Ireland’s economy globally attractive for investment and to ensure a competitive Irish economy into the future.
