Dáil Éireann díospóireacht -
Thursday, 3 May 2001

Vol. 535 No. 3

Written Answers - Job Vacancies.

Austin Deasy

Ceist:

66 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason there are so many job vacancies and increased demands for work permits from foreign nationals with over 100,000 people unemployed; and if she will make a statement on the matter. [9588/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

The Irish economy has translated strong economic growth into exceptionally large numbers of new jobs in a short period. Based on the most recent figures published by the Central Statistics Office employment has grown by 3.8% resulting in 63,000 extra persons at work in the 12 months to the fourth quarter 2000. During this period unemployment declined to its lowest level in 20 years with an unemployment rate of 3.9%. Of the 69,000 persons unemployed, based on the ILO measure, 24,000 are long-term unemployed equivalent to 1.4% of the labour force.

The rapid growth in the economy and in employment has resulted in a significant tightening of the labour market. This is evident not alone from the dramatic reduction in the unemployment rate but also in increased vacancy levels and a general acceleration in wage levels. The most recent FÁS-ESRI-Forfás survey of vacancies in the private sector in early 2000 shows that there were 77,600 vacancies. This exceeds the overall numbers unemployed. One quarter of firms stated that they had difficulties in filling vacancies giving a variety of reasons including competition for labour, shortage of applicants with practical skills and a shortage of applicants with experience. As many as 15% of these firms had tried to recruit from abroad.

In the light of the current labour market situation, the Government is pursuing an integrated strategy within an overall framework of promoting employment growth and employment for all who seek it. There is a comprehensive policy mix in place to achieve these objectives. Key aspects include policies focused on mobilising indigenous labour supply from all available sources. Fiscal polices which enhance the reward for work and active labour market policies are fundamental to the achievement of positive outcomes in order to assist the unemployed and in particular the long-term unemployed in their transition to work. Further elements of this approach include the provision of education, training and, in particular, lifelong learning opportunities in order to strengthen the employability of individuals and to ensure that individuals have the appropriate skills consistent with the needs of firms in a rapidly growing economy.

This approach of matching supply and demand is complemented by a policy aimed at facilitating balanced immigration in order to secure a consistent, strong sustainable and non inflationary level of economic growth.