Vol. 538 No. 1
118 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself as to the adequacy of the workforce to meet economic needs in the foreseeable future; and if she will make a statement on the matter. [17459/01]
128 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if sufficient resources are available to FÁS to provide the necessary back up and or re-training facilities in the event of further job losses; and if she will make a statement on the matter. [17470/01]
I propose to take Questions Nos. 118 and 128 together.
The Department of Finance in their stability programme published on budget-day in December last, taking account of the full range of economic assumptions, forecast employment growth of 60,000, 37,000 and 31,000, respectively, in the period 2001-2003, average annual labour force growth of 2.2% over the three-year period, and a further fall in the unemployment rate to 3.2%.
Thus, over the medium term, the economy is projected to slow appreciably from the recent highs, while unemployment is projected to remain around 3 %, suggesting that the labour market will remain tight for the foreseeable future. These economic projections reflect the available information available at that time and as a consequence they do not take account of the subsequent slowdown in the US economy nor any longer term impact from foot and mouth disease.
Based on these assumptions, policies and actions are currently in place which represent a concerted effort to meet the labour and skill needs of the economy. The twin strategy being adopted is to provide supports and mobilise labour supply from all available sources, including immigration, and to provide the necessary education, training and lifelong learning opportunities to ensure that employed persons and those seeking employment have the required skills. The policy mix to implement this strategy is set out in the Employment Action Plan 2001. Key aspects of the policy mix and actions set out in the employment action plan include: fiscal policies, including personal tax reductions, aimed at enhancing the reward from work; the preventive strategy which intervenes at an early stage of unemployment to offer persons a job or support in the transition to a job, which is aimed at preventing the drift to long-term unemployment; a wide range of active labour market programmes to re-integrate the long-term unemployed and disadvantaged groups, especially people suffering from disabilities, into employment; fiscal and training policies aimed at increasing the participation of women in the labour market; a wide range of education and training policies aimed at increasing the skill levels in the economy. In particular the introduction of the national training fund heralds a new approach to investment in training in and for the business sector to enhance labour quality; a more liberal immigration regime to facilitate workers from outside the European Economic Area, EEA, to take up employment opportunities.
