Dáil Éireann díospóireacht -
Wednesday, 5 Jun 1996

Vol. 466 No. 4

Written Answers. - Unemployment Reduction.

Mary Coughlan

Ceist:

26 Miss Coughlan asked the Minister for Finance the steps, if any, he proposes to take to ensure that the current economic growth being experienced in Ireland will be translated into an immediate reduction in the numbers of unemployed; and if he will make a statement on the matter. [11594/96]

Minister for Finance (Mr. Quinn)

Ireland has indeed experienced sustained solid growth in recent years. It is estimated that GNP expanded by over 7 per cent in 1995, and growth of 5 per cent is forecast this year. This growth has been reflected in strong employment growth. In the last six years the numbers at work rose by 146,000, or over 13 per cent. This is more than the number of jobs created in the previous 30 years! In 1995 alone, employment grew by a record 52,000.

This year, employment growth is expected to remain strong. My Department forecasts an increase of around 30,000 in the numbers at work this year. The available indicators to date support this view that employment will continue to increase. For example, building and construction employment increased by over 8 per cent in the year to March 1996.

It is therefore clear that the myth of "jobless growth" has been well and truly exploded and that the increase in employments is impacting on unemployment. The 1995 labour force survey shows that there has been a fall of 17 per cent in unemployment in the two years from mid-April 1993. This is a fall of 40,000 in the numbers of people unemployed. My Department forecasts that unemployment will fall further in 1996 by about 10,000.

Ireland's unemployment rate, which averaged 12.9 per cent in 1995, is now converging towards the European average. The OECD¹ estimates that in 1996 Ireland's unemployment rate will average 12.5 per cent within 2 per cent of the European average, estimated at 10.8 per cent.

The progress made in reducing unemployment has been achieved despite the continuing high rate of natural increase in the labour force, increased participation rates as job prospects improve and lower levels of emigration.

This is evidence that the Government policies of sound macroeconomic management and fiscal restraint are working to create growth and sustainable employment and that the scourge of unemployment is being effectively tackled. Furthermore, the measures taken to improve training and employment opportunities for the unemployed, and particularly the long-term unemployed, in the last budget are also an important part of this process.

¹Economic Outlook No. 58.