Richard Bruton
Ceist:39 Mr. R. Bruton asked the Minister for Finance his views on the policy implications of the failure of the last National Development Plan to contain the growth in unemployment.
Written Answers. - Employment Targets of Former National Development Plan.
Richard Bruton
Ceist:75 Mr. R. Bruton asked the Minister for Finance the reason the employment targets of the last National Development Plan were not achieved.
I propose to take Questions Nos. 39 and 75 together.
The last National Development Plan did not contain goals for levels of overall employment or reduced unemployment. It indicated that the eventual outcome in regard to employment and unemployment would depend on the incidence of redundancy and the extent of net emigration. The latter would be influenced not only by availability of job opportunities at home but also by the situation in the Community and other labour markets.
The plan did contain targets for gross job creation, particularly in the major productive sectors of the economy. Of these, I will mention one of the most important. The primary target established under the industry section of the National Development Plan 1989-93 was the creation on average of 20,000 gross new jobs in Industry and International Services for each year of the programme. The results achieved for the years 1989-92 show that this target was met. In 1989, 22,142 gross jobs were created; in 1990, 21,239; in 1991, 18,794 gross and in 1992, 18,708 giving a total over the period of 80,883 gross jobs created in the industry area.
As regards net employment, during the period of the last Development Plan, non-agricultural employment rose by 55,000 and total employment by 40,000. This employment performance compares very favourably with that of our trading partners. Even in the recessionary years since 1990 our non-agricultural employment has continued to expand against the background of falling employment elsewhere.
In the same period in which our total employment increased by 40,000, unemployment increased by 54,000. This increase in unemployment reflected the rapid growth in the labour force. While rapid labour force growth has been and will continue to be a feature of Ireland's demographic circumstances for some time, its impact on the recorded level of unemployment was particularly significant over the last five years because of the very substantial change in migration patterns.
As regards policy implications, the Government is encouraged by the success of its policies as evidenced by the rapid advances in the level of employment when the international economy is strong and the maintenance of employment levels when our trading partners are in recession. The centrepiece of the Government's strategy to combat unemployment will continue to be the pursuit of policies to maximise sustainable employment growth.