Brian Lenihan Jnr (Dublin West, Fianna Fail)

The latest data on labour force participation relate to the third quarter of last year when, according to the quarterly national household survey, 62.5% of the total population over the age of 15 was in the labour force. As labour force participation peaked in the third quarter of 2007 at just over 64.5%, it has declined by 2.1 percentage points over the last two years. There was a fall in the participation rates for all male age groups during this period. Participation rates among females over the age of 25 showed minimal falls for two age groups and increases for the other four groups. The biggest fall in the labour force participation rate was in the 15 to 24 age group, among both males and females. Although full data for 2009 are not available, it seems that the fall in labour force participation for this age group reflects an increased participation in education by younger people and therefore should be welcomed. The increase in participation in education, which is associated with the fall in labour force participation rates, will contribute to enhancing the skill level of our labour force and the productive capacity of the economy over the medium and longer terms. The fall in the average labour force participation rate is an outcome of the reduction in employment opportunities that is associated with the economic downturn. While receipts from income tax were weak last year, reflecting the poor economic and jobs climate, it is difficult to estimate the impact the drop in participation, particularly among younger people, would have had on tax receipts. In the absence of detailed information on those involved, it is not possible to estimate with any certainty the impact on the live register of the fall in labour force participation rates.

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