Seán Sherlock (Cork East, Labour) | Oireachtas source

I propose to take Questions Nos. 7 and 13 together.

The rise in youth unemployment as a result of the global economic downturn is a challenge for most EU countries. The average EU unemployment rate for those under 25 years of age in the labour force is 23.7%. In Ireland, the youth unemployment rate is 30%, while the long-term unemployment rate is 8.9%.

The aim of the Action Plan for Jobs is to create a supportive environment for enterprise to create and sustain jobs. All of the measures in the action plan are designed to promote employment opportunities in different ways and many young people and long term unemployed people will benefit from the implementation of these measures. Many of the sectors we have focused on supporting under the action plan, such as digital gaming, ICT and tourism, offer opportunities particularly suited to younger workers. Labour market activation programmes administered by other Departments, such as JobBridge, Springboard and Tús also aim to increase youth employment.

The Department of Jobs, Enterprise and Innovation has worked with business representative bodies to highlight the range of supports available to companies who recruit people from the Live Register. These include Revenue’s job assist scheme and the employer’s PRSI exemption scheme operated by the Department of Social Protection. The Department of Social Protection also operates the back to work enterprise allowance for long-term unemployed people wishing to set up their own business. Measures to support micro-finance and mentoring are particularly important to people who have been out of the labour market for some time or to young entrepreneurs who do not yet have a track record.

As part of a suite of measures aimed at improving access to credit for SMEs and entrepreneurs under the Action Plan for Jobs, we have established the Microfinance Fund targeted at entrepreneurs, start-ups and existing microenterprises employing not more than ten people. The County and City Enterprise Boards provide a range of services, including training and mentoring, to people wishing to set up their own business, including those on the live register. Enterprise Ireland also has a range of funding supports available for entrepreneurial activity. For example, the agency launched New Frontiers, Ireland’s largest entrepreneur development programme in February 2012. It supported 60 companies through the Competitive Start Fund last year and also introduced a new Competitive Start Fund for female entrepreneurs.

Through the new Momentum initiative, the €20 million labour market education and training fund operated by the Department of Education and Skills will assist 6,500 long term unemployed jobseekers to gain skills and to access work in sectors of the economy where there are job opportunities. This initiative includes specific provision for those under 25 years of age. The Government as a whole will continue to do all it can to facilitate the return to work of those who have lost their jobs or to get their first job. In addition to the Action Plan for Jobs, the Government’s Pathways to Work strategy is focused on assisting the long-term unemployed to move into employment through more regular engagement, upskilling and training.

The Minister, Deputy Bruton, is currently preparing the 2013 Action Plan for Jobs on behalf of the Government and in that context, we will be exploring further measures which can be taken to transform our economy and support job creation to support these groups of unemployed people.

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