Joan Burton (Dublin West, Labour) | Oireachtas source

Yes, or they can move to a different one. Over 18,000 people have participated in the JobBridge programme since it started. At any one time there are approximately 6,000 people participating in it. Indecon carried out a study which indicated that five months after people had completed the JobBridge programme, 60% of those who were graduates had found work. In the case of non-graduates, the rate was over 50%. In the context of job placement schemes, this is among the highest levels of job placement in Europe. Employers have been very surprised by the calibre of the employees recruited. One of the most important aspects of the JobBridge programme has been the message it has sent regarding the quality of people available, who through no fault of their own had lost their jobs. In the three years after the bank guarantee the economy lost 250,000 jobs. We literally fell off a cliff in terms of employment.

On the question raised by Deputy Brendan Griffin, the sustainability of the social welfare budget can be seen in two ways. In terms of individuals and communities, the more people we get back to work, the less pressure there will be on the social welfare system. Also, as the economy grows, the social welfare spend of €20 billion will decrease in real terms. For example, if the economy increases from a figure of €100 billion to €120 billion, at €20 billion, the social welfare spend will reduce as a percentage. As economists say, if we can get people back to work, the deficit will begin to drop rapidly. I agree that a spend of 40% of Government spending on social welfare is high, but it is keeping the country going. The way to reduce it is to grow the economy and get people back to work. Every time we get somebody back to work, the social welfare costs, amounting to a minimum of €12,000 and up to €20,000 for a family, are removed. The family in question gradually begins to pay PRSI and, ultimately, tax.

One of the major benefits of creating employment in the economy is that confidence increases and people with savings begin to spend. There is considerable saving in the economy. Many people are paying down debt, but they are also saving because at the back of their minds there is a concern that they may need savings because their job may not be totally secure. The creation of employment brings an increase in consumer confidence and encourages more spending.