Billy Kelleher (Cork North Central, Fianna Fail)

I propose to take Questions Nos. 112 and 113 together.

The live register is not designed to measure unemployment. It includes part-time, seasonal and casual workers entitled to unemployment benefit. The total number of people recorded on the live register for August 2008 is 247,384, showing an increase of about 73,000 in the 12-month period.

Employment and unemployment are measured by the quarterly national household survey, QNHS, and published by the Central Statistics Office. In the second quarter of 2008, the most recent quarter for which data is available, employment has increased by 6,900 over 12 months to a current total of 2,108,500. Unemployment increased by 15,200 in the same period to 115,500. The unemployment rate was 5.2%, which compares favourably to the EU 27 members' average unemployment rate of 6.8%.

While the level of employment growth is disappointing, the fall in employment in the construction sector in the past year is a major factor. The recent easing of employment growth comes after many years of extraordinary growth in the labour force and employment, which could not have lasted indefinitely. Since the second quarter of 2005, employment has grown by 176,900 with unemployment increasing by only 29,000 in the same period. It is generally accepted that the rate of growth in the economy and in employment experienced over the past few years could not continue.

FÁS, as the national training and employment authority, is providing a range of proactive job-related services, supports and programmes, to assist individuals to return to the labour market.

As regards the economic situation and the impact on the labour market, the focus is now on flexibility in the delivery of employment and training programmes so those who are affected by the slowdown and by unemployment can be assisted appropriately and in good time.

FÁS and the Department of Social and Family Affairs are working together to respond quickly to the rising live register numbers. For example, they have agreed that redundant workers will be referred immediately to FÁS rather than wait for three months on the live register as was previously the case. FÁS has also established a training fund to enable a speedy response to identified re-training needs for low skilled and redundant craft workers. Alongside the local employment services provided by area based partnerships, FÁS is currently gearing up its employment services to provide increased capacity for expected increased referrals from the live register. FÁS will be providing a range of certified short, flexible and modular programmes designed to upskill redundant workers so they can enhance their prospects of securing employment. A number of programmes are already in place and the frequency and range of these will be expanded over the coming months. A range of actions is being implemented by FÁS for those affected by the construction slowdown, including a focus on providing retraining opportunities for redundant construction workers in emerging areas within the construction sector. This will include retraining in the following — the installation of sustainable technologies, environmental activity and compliance and regulatory work. FÁS will also assist individuals in any way it can to seek employment in construction in other EU countries. FÁS has held a European construction jobs fair for employers from other EU countries.

Discussions concerning the 2009 budget are ongoing. The budget for FÁS is agreed on the basis of detailed discussions between FÁS, my Department and the Department of Finance in the context of the annual Estimates process and will be announced on budget day. My Department is commencing a review of the labour market programmes, including training programmes, that it funds. The review will examine these programmes in terms of efficiency and effectiveness and will draw conclusions about the adequacy and balance of resources in the context of current and future labour market policy challenges taking into account the recommendations of the national skills strategy.

The enterprise development agencies of my Department, including IDA Ireland and Enterprise Ireland, are working to ensure that we continue to grow the economy and jobs even in the current more challenging environment. The pipeline of new business for which IDA Ireland is competing is as strong as at any time in recent years. To facilitate this we need to ensure that our competitiveness is sustained into the future.

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