Dáil Éireann Debate, Thursday - 10 February 2022
48. Deputy Joe Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on the progress made towards the Economic Recovery Plan target of two and a half million persons in employment by 2024; his views on whether the target needs to be reconsidered; and if he will make a statement on the matter. [6799/22]
Amharc ar fhreagraThe Government’s Economic Recovery Plan, published on 1 June 2021, set out renewed supports, investments and policies to underpin economic recovery and transition, including the overarching ambition of having 2.5 million people in work by 2024. This is a medium-term employment target to grow employment and crucially to ensure that these jobs are more productive, innovative, resilient and in new areas of opportunity.
Ireland saw robust increases in employment in the latter part of 2021. The Central Statistics Office’s Labour Force Survey (LFS) Quarter 3 results published on 25th November show that employment levels are approaching the 2.5 million target set for 2024 in the Government’s Economic Recovery Plan. The growth in employment follows similar growth in Q2 and is reflective of the success of the Government’s efforts to help workers and businesses throughout the pandemic, allowing them to return to work relatively quickly as public health restrictions eased and the Government’s vaccination programme was rolled out.
Overall employment levels recovered to 2,471,200 as of Q3 2021, exceeding pre-pandemic levels for the first time. Employment increased in all 14 economic sectors between Q3 2020 and Q3 2021. This reflects the high level of Government supports for more exposed sectors, but also the strong performance of sectors that have been largely insulated from the pandemic.
The recent wave of the Omicron variant of COVID-19 has seen widespread global disruption across economies and societies, including in Ireland. While the monthly unemployment rate was 5.3 percent in January 2022, the COVID-adjusted unemployment rate stood at 7.8% in January 2022, up from 7.5%, in December 2021, and 6.9% in November 2021, but down significantly from 21.7% in December 2020. As the economy re-opens, it is anticipated that numbers in receipt of the Pandemic Unemployment Payment and the COVID adjusted unemployment rate will begin to fall.
The extension of key supports for businesses and employees as the economy reopens provides a bridge to facilitate a continuing and wider economic recovery over the early part of this year. While some companies will face challenges as supports are gradually withdrawn in line with the evolution of the COVID-19 situation, employment growth, robust economic growth, and strong exchequer figures point to a resilient economy, which bodes well for the medium-term trajectory, and indicates the value of the economic supports during the pandemic.
The Plan is about the sustainable rebuilding and renewal of our economy, across four pillars: Helping people back into work with supports, intense activation and accelerated reskilling and upskilling opportunities, through Pathways to Work 2021-2025; Re-building sustainable enterprises by future-proofing enterprise to be more resilient, innovative, and productive; A balanced and inclusive recovery through strategic investment in infrastructure and reforms that enhance our long-term capacity for sustainable growth, balanced regional development and by improving living standards; and Ensuring sustainable public finances.
Progress on the wide range of deliverables and workstreams across the four pillars towards this overall ambition is being overseen by the Cabinet Committee on Economic Recovery and Investment and related sub-groups and Senior Official Groups and progress towards the various targets will continue to be monitored carefully. Employment performance and quality will be a core part of this process. A progress report will be advanced in the coming period which will outline the progress the Plan has made in transitioning Ireland’s economy.
