Dáil debates

Thursday, 19 June 2008

4:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 10: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her strategy to tackle soaring youth unemployment; and if she will make a statement on the matter. [24024/08]

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Unemployment is measured by the quarterly national household survey, collated and published by the CSO. The latest release on 5 June for the first quarter, December-February 2008, shows that there are now 28,800 young people unemployed, an increase of 1,000 in the year, and the youth unemployment rate is 8.8%. This is one of the lowest among other EU member states and compares favourably to the youth unemployment rate for the EU 27 in 2007 of 15.4%.

The latest live register release on 10 June, relating to the month of May, recorded 42,730 young people under 25 as signing on, an increase of 12,169 in the year. The live register is not designed to measure unemployment as it includes part-time, seasonal and casual workers who might be signing on from time to time.

A range of measures and supports is provided on an ongoing basis by FÁS, aimed specifically at assisting young people who have greater difficulty in entering or re-entering the labour market. These include an extensive range of training interventions for young early school leavers as part of the Youthreach programme jointly managed by FÁS and the Department of Education and Science. The interventions are delivered in predominantly disadvantaged areas in both urban and rural communities, through the provision of training, education and learning supports to enhance opportunities for progression to the labour market or further training and education.

A range of bridging, specific skills training courses and traineeship programmes, accredited by FETAC, is provided through FÁS training centres. These programmes help to raise participants to raise their educational and skill levels and to gain work experience with a view to improving individual employability. Job clubs funded by FÁS, in conjunction with the community and voluntary sectors, are aimed at providing enhanced job-seeking supports, such as interview skills, CV preparation etc.

While the slowdown in the economy has resulted in less employment growth than that experienced more recently, employment has grown by 2.6% or 53,800 in the year to the first quarter of 2008 and is forecast to continue to grow this year by 24,000. In addition, 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.

For anyone who may become unemployed a number of supports are available. After three months on the live register those who are still unemployed are referred by the 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.

Specifically, FÁS is implementing a range of short and medium-term actions for those affected by the increase in unemployment and the construction slowdown. These include putting in place training to upskill construction workers in respect of 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.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Over the weekend I had a chance to look through the figures in detail, taking both the live register and the most recent quarterly household survey, and two things struck me in particular. First, of those who lost their jobs in the past year almost 50% are under 35 and, second, between two thirds and three quarters of those who became unemployed during that period are male. That probably reflects the downturn in the construction sector but it is terrifying. Has any action been taken to identify the several hundred thousand people in sunset industries whose jobs are at risk due to economic recession? What has been done to provide them with skills to ensure they will be able to find new employment, without having to wait three months, when they lose their jobs? Thus, they will not end up in the dole queues at all.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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The first task is to analyse the job losses and quantify the numbers and the second is to determine whether the State is responding by way of putting in place a wide range of support mechanisms to create new jobs or teach the skills required by those who need to upskill to get new jobs. The Deputy's question referred to what the Government is doing to assist young people. There is a range of access programmes for young people to allow them get on to the employment ladder.

There is funding available through Skillnets and other programmes for those who have been identified as at risk to be reskilled, even before they leave employment. These programmes have proven quite successful and are widely supported by the chambers of commerce throughout the country.

The understanding of the county enterprise boards regarding what might happen to local economies is another matter. We need to establish a view on all the programmes that are operating locally to determine their exact impact and weaknesses. The economic climate is changing and we need to respond. It is not as if the programmes are not in place because they are, but they may have to be fine-tuned. We may have to introduce more. The Government understands the position of those who lose their jobs and it and its agencies will do everything possible to ensure employees are sufficiently skilled to take up whatever jobs might be available.

The Minister of State, Deputy Kelleher, referred to the construction industry and those who need to be reskilled by FÁS or introduced to new possibilities within other countries in terms of how they might take up employment or exploit the potential to make money in terms of other developing economies. Work is being done on every aspect of this matter.