Willie Penrose (Longford-Westmeath, Labour)
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Question 2: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking, in view of the fact that the numbers on the live register have gone through the 200,000 barrier, to stem the number of job losses, to provide new training opportunities for those who have lost their jobs and to encourage the creation of new employment opportunities; and if she will make a statement on the matter. [23971/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 3: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her Department has presented her with any new projection for employment and unemployment in 2007, 2008 and 2009 in view of recent economic developments and projections; and if she will make a statement on the matter. [24097/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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I propose to take Questions Nos. 2 and 3 together.

The most recent figures published by the Department of Social and Family Affairs show that there were 201,756 persons on the live register in May. However, it is important to remember that the live register is not a measure of unemployment as it includes part-time, seasonal and casual workers who might be signing on from time to time.

Unemployment is measured by the quarterly national household survey, collated and published by the CSO. The current rate of unemployment is 4.6% or 102,100 people in quarter 1, December to February 2008. This reflects an increase of 8,700 in the year.

The increase in unemployment was not unexpected, particularly in the context of the slowdown in the construction industry. It is generally accepted that the strong rate of growth experienced over the past few years could not continue and the economy is now entering a period of adjustment.

However, this increase in unemployment must be seen in the context of the substantial increase in employment by 224,300 in the three-year period since 2005. This compares with an unemployment increase of 19,500 in the same period. The number of people currently in employment is 2,135,100 and employment has increased by 53,800 or 2.6% in the past 12 months.

The employment market still has job vacancies. The most recent FÁS-ESRI employment and vacancies survey for April 2008 shows that 7% of firms are reporting vacancies.

In the budget projection, published by the Department of Finance last December, unemployment was forecast to average at about 5.5% over the period 2008 to 2010. Employment was forecast to continue to grow this year by about 24,000. Some other economists are still forecasting this level of employment growth. For example, following publication of the quarterly national household survey on 5 June last, Bloxhams revised its 2008 forecast from no net change in employment this year to an average rise of 25,000. The Department of Finance will publish a revised forecast in its pre-budget outlook in October.

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 that those who are affected by the slowdown and by unemployment can be assisted appropriately and in good time.

After three months on the live register those who are still unemployed are referred by Department of Social and Family Affairs to FÁS to assist them into training or employment. FÁS is working through its own employment service and with the local employment service provided by area based partnerships to provide increased interviewing and caseload management capacity to respond to the increased numbers on the live register. The range of integrated support services provided by FÁS also involves information sessions, skills analysis, training/retraining courses and job placement. These services will be available for those who become redundant because of company restructuring or closures.

Specifically, FÁS is implementing a range of short and medium term actions for those affected by the increase in unemployment and the construction slowdown, such as: putting in place training to upskill construction workers in emerging needs; business training and mentoring for workers from larger enterprises entering self-employment; developing measures to ensure continuity in the apprenticeship system; and promoting access for mobile workers to construction jobs elsewhere in the EU, including the UK.

FÁS is also working on increasing its market share of vacancies in the employment market through a range of marketing efforts. As a result, vacancies notified to FÁS in 2007 increased by 12%.

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. To facilitate this we need to ensure that our competitiveness is sustained into the future.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister of State. On behalf of the Labour Party, I am shocked by the blasé reply. Nobody is in charge. Nobody is taking this seriously. For the first time since 1999 there are more than 200,000 people on the live register. It is the biggest increase — 31% over a 12-month period — since the live register came into being in 1968. Conditions in the labour market have taken a decided turn for the worst since January last. Live register unemployment is up by 35,700. There is a 20.8% increase in the seasonally adjusted numbers on the register since the end of December last, 25,500 men and 10,100 women. Redundancies are up by 13,564 since January. Economists predict that the unemployment rate will rise to 6% or more.

We reflect the public view that there is no sense in anyone being in charge. There is no sense in anybody taking this matter seriously. The blasé nature of the Minister of State's reply vindicates that viewpoint. Naively, I stated last March that if the Government did not take action soon the number on the live register would be almost 200,000 by the end of the year and that the Government must end its complacency. What action will the Government take? What interventions will the Government make to improve the situation? Will this be moved to the top of the Government's political agenda? What attempts are being made to save existing jobs and what efforts is the Department making to attract alternative industry to places that are losing jobs and where jobs are being displaced?

Billy Kelleher (Cork North Central, Fianna Fail)
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The answer was not blasé. One must look at the matter in the context of what we have achieved in recent years, particularly in view of the fact that there are more than 2.1 million persons working in the Republic. Certainly, the forecast is that there will be change, particularly in the construction industry. FÁS has been very involved in early intervention in assessing skill shortages for people who may be let off, where they can go and where they can be retrained. FÁS is compiling statistics on a regular basis to ensure that it knows exactly the people who are unemployed and whether there can be job placements and if job placements cannot be found immediately, that there are training and retraining programmes. FÁS has been forceful in that regard. I commend FÁS and I want to ensure that it continues such efforts.

In the national development plan there is a commitment that the national skills strategy is a fundamental plank in ensuring that we remain competitive and that we have a highly mobile, flexible, educated workforce. We will continue to fund this and ensure that in the national development plan it is given priority. Those are the two areas, early intervention from FÁS and the national skills strategy.

In the context of what we are trying to do in bringing forward investment, the position is we are remaining competitive. We have a low corporation tax. IDA Ireland is actively promoting Ireland as a place to do business and we continually market this country as having a highly educated, mobile workforce and a strong economy.

All the indicators show that, while there are challenges ahead, the fundamentals of the economy are sound compared with those of the previous generation that faced problems in the 1980s. The Government is committed in ensuring that we run a solid economy. The Government is very much in charge. That is evident in the context of what we are doing in the national development plan.

Leo Varadkar (Dublin West, Fine Gael)
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It seems the Government in many ways is like an old actress dining out on her reputation rather than her appearance. It is a Government in denial. The budget figures show a projected 5.5% standardised unemployment rate — the ESRI and FÁS state 6% or more while Bloxhams states 6%.

Billy Kelleher (Cork North Central, Fianna Fail)
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On a point of order, to whom is Deputy Varadkar referring? Is he referring to me as the old actress?

Leo Varadkar (Dublin West, Fine Gael)
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I refer to the Government.

Damien English (Meath West, Fine Gael)
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The Minister of State is a has-been. He was a star.

Mary Coughlan (Donegal South West, Fianna Fail)
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We could always say the following of those guys: always a bridesmaid, never a bride.

Brendan Howlin (Wexford, Labour)
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Allow Deputy Varadkar to continue.

Leo Varadkar (Dublin West, Fine Gael)
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Essentially, any time we discuss employment in this House we get this lecture about how many jobs have been created in the past ten years. One could get the same lecture from Fine Gael and Labour, that when we were in government last 1,000 jobs were being created a week. I am not interested in any lectures about the past, I am interested in the future and what is happening today. Unemployment is going up and the Government is in denial about it.

This is a simple question. Does the Minister of State stand over the Government's projection of 5.5% unemployment at the end of this year or does he accept the reality, what everyone is saying, that unemployment will rise to 6% this year and higher next year, and that unemployment is effectively the human cost of economic mismanagement by the Government?

Billy Kelleher (Cork North Central, Fianna Fail)
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It is always important to remind people what we have achieved, especially the Opposition which might sometimes be in denial in that regard. We are concerned about the situation in which we find ourselves. There is an international credit crisis which is causing pressures in housing and elsewhere. That reflects on the construction industry.

There have been increases in fuel and commodity prices. There are considerable international challenges but the fundamentals are sound and the Government is promoting Ireland as a place to do business. Ireland is still very competitive and the IDA continually markets it. There are some good news stories in the pipeline. The IDA is confident it can still market Ireland as a positive place in which to do business.

Obviously, redundancies and jobs losses are very regrettable for the individuals concerned. That is why FÁS is very much involved in early intervention, in assessing skills requirements and job placements and in training people for available job placements.

A recent survey shows that 7% of companies have job vacancies. There are difficulties in certain sectors of the economy. That was acknowledged in last year's budget when it was pointed out quite clearly that the construction industry was going through change and a readjustment. That change has been very sharp and is the reason FÁS is concentrating on retraining construction workers.

Willie Penrose (Longford-Westmeath, Labour)
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Is it true the FÁS report stated that 65,000 construction jobs will go by the end of 2009? Is it that serious? Will the Minister of State lift the 2004 cap on participation in community employment schemes to allow increased numbers to participate, especially in rural areas?

Given the impact on the construction industry, will the Minister of State raise at Government level the idea of borrowing for capital purposes to stimulate the construction industry, especially to help generate activity in the schools building programme so that badly needed schools can be built for children? It would maintain a level of construction. Would that not be productive? It would be borrowing for capital rather than current purposes.

Billy Kelleher (Cork North Central, Fianna Fail)
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I thank the Deputy. The Government values any progressive ideas. When the Minister for Finance is framing his budget, he will take into account the economic realities facing us. I refer to the projections in regard to unemployment. Everybody knows the world economy is going through a state of flux. The weak dollar and sterling are causing our exporters grave difficulties. We will consider any proposal. The Minister for Finance will formulate his budget and will come forward with very positive proposals to ensure we remain competitive and to stimulate the economy.

Leo Varadkar (Dublin West, Fine Gael)
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We are hearing about the international situation again. This is one of the excuses which is always trotted out. Of course, we are in a more difficult international environment economically but unemployment in Ireland is rising much faster than in other countries. I believe we are only one of three of the EU 15 in which unemployment is rising. Does the Minister of State acknowledge that and that unemployment in Ireland is now higher than it is in the Netherlands, Denmark, Britain, Australia and America? The Minister of State should not hide behind Italy or France. He should at least acknowledge that the situation in Ireland is worse than it is in many of our key competitors. Singapore and Israel are the other examples.

Billy Kelleher (Cork North Central, Fianna Fail)
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I remind the Deputy that the Irish unemployment rate is well below the EU average.

Leo Varadkar (Dublin West, Fine Gael)
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That includes Romania and France.

Billy Kelleher (Cork North Central, Fianna Fail)
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We are in the euro zone and we know there are challenges. The Government is committed to ensuring that we remain competitive, that we have key policies in place, that we fund the national skills strategy and that the IDA actively markets the country. It is important we state that there are international challenges and that this is not because of failed policies.

This is an open exporting economy dependent on exporting to the global market. That is causing grave difficulty not only for Ireland but for our European competitors as well. I travelled to India and elsewhere but people are still looking to Ireland as a place to do business. We should not undermine the fact that this is still a competitive nation with a highly skilled workforce and that Government policies in place will ensure that continues to be the case.