Dáil debates

Thursday, 12 November 2009

3:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 2: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the findings of the FÁS quarterly commentary, published on 4 November 2009, which warned of an increase in the pattern of youth unemployment; the steps she will take to combat this trend; and if she will make a statement on the matter. [41139/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I note the publication of the latest FÁS quarterly labour market review for autumn 2009, published last Wednesday. It highlights the increase which has occurred in youth unemployment as evidenced by the latest quarterly national household survey, QNHS, and live register statistics.

According to the QNHS at the end of the second quarter the unemployment rate for the age group 20-24 years of age stood at 23%, an increase of 12.6% on 2008. The percentage and the number of people in this cohort has increased but there has been a fall in the participation rate by 2.4%. The recent October live register statistics show that 84,948 people under 25 are signing on, which is a decrease of 4,862 from September.

The report suggested that many people of these age groups have continued to stay in education, as a fall in labour force participation rates has occurred. Whereas the creation of new sustainable employment opportunities for individuals through attracting investment to Ireland and supporting our indigenous enterprise base is the best way to tackle unemployment, my Department through FÁS is also actively working to ensure increased accessibility to the range of services and supports for all individual jobseekers, including those who are under 25 years of age. We have, for example, almost doubled the national employment action plan referral capacity of the FÁS and local employment services to 147,000 places.

In addition, the number of activation training and work experience places provided through FÁS has doubled to more than 130,000. This is clearly a substantial increase on the 66,000 places which were available at the end of last year. At the end of September, 104,000 unemployed were participating or had completed FÁS training or employment programmes. Those under 25 years of age are accessing both the job search services and training and work experience programmes in significant numbers.

The main specific FÁS provision for early school leavers continues to be training at community training centres under the Youthreach programme. There are 2,300 places on the programme, which is directed at unemployed early school leavers between the ages of 15 and 20. The programme provides basic skills and work experience and gives early school leavers an opportunity to acquire certification and progress to further training or employment.

Additional information not given on the floor of the House.

Another initiative that strives to prepare the unemployed for future job opportunities is the work placement programme. This programme is aimed at providing 2,000 six-month work experience placements to young people, graduates and other unemployed people. The programme consists of two streams, each consisting of 1,000 places. The first stream is for graduates and the second stream is for all others, with 250 places ring-fenced for those under the age of 25. As uptake on the scheme has been slower than anticipated, we have just concluded a review of its operation. I intend to announce revised criteria for its application shortly. I can also confirm to the House that FÁS is developing a youth framework. The FÁS youth framework will succinctly draw together FÁS commitment to young people. The target group for the FÁS youth framework is young people, aged between 16 and 25 years. It will detail in a comprehensive way all programmes and initiatives available to this target group including access and progression options. Monitoring procedures and an evaluation process will form part of the framework to measure the effectiveness of services. A working group has been established and work is due to commence on the framework shortly.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

I appeal to the Tánaiste not to write off our young people, who are seriously affected by having to bear the brunt of the downturn. There has been a 60% year-on-year increase in the number of graduates seeking employment or further training. It is clear from FÁS's commentary on today's quarterly returns that young men have been particularly affected by the downturn. Approximately 40% of those between the ages of 15 and 19 and 30% of those between the ages of 20 and 24 are unemployed. Figures released by third level institutions, including universities and institutes of technology, suggest that many young jobseekers are choosing to stay on in education. Does the Tánaiste agree that if they were not, there would be an even greater explosion or tsunami in the number of younger people who are unemployed? Why are we not focusing on this important issue? Why are real measures not being introduced to address this problem?

The Labour Party has suggested a number of measures over the past 12 months. We proposed the introduction of an early learning scheme, which would play an important role in keeping people in formal education and learning. We also advocated the "bridge the gap" graduate and apprenticeship scheme, which would give first-time jobseekers an opportunity to develop their skills and enhance their job prospects. I suggest that we should eliminate all waiting periods for back to education and back to work allowances. We can get rid of them. We explored the possibility of enhancing eligibility for community employment schemes with the Tánaiste's officials the other day — they are ready to do it. I propose that the cap on the number of post-leaving certificate courses should be lifted. We should get rid of every bureaucratic blockage that is identified. It is desperately important that we focus on flexibility, in the interests of addressing the most important issue of our time. We should massively expand the internship schemes by giving people an opportunity to acquire necessary and vital experience in Government agencies and semi-State bodies. Young unemployed Irish graduates should have more opportunities to work in the EU institutions. I ask the Tánaiste to tell the House whether any of these things will be done to give hope to our young people and send them a signal that they are not being forgotten.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

None of us disagrees with the absolute necessity to ensure that young people are interfacing with the labour market, which is hugely important. That is why our investment and activation programmes have a specific focus on young people. The youth framework that has been developed following consultation with the Minister of State, Deputy Dara Calleary, is distinctly looking at the needs of vulnerable young people. Deputy Penrose knows from the recent OECD visit that we have a particular exposure in the construction and retail sectors, where there is a low skills base. That is where the target needs to be. According to our policy perspective, there should be investment in education and training. Training should not be organised on the basis of any old thing, but on the basis of convergence technology or the conversion of existing people.

I have to say we are not happy with how the graduate programme has worked out. We are distinctly unhappy with the graduate and the non-graduate programmes. They should have worked out much easier. I have reviewed them with the Minister of State, Deputy Calleary. It is our clear intention to change them. I believe there is huge potential to create what Deputy Penrose described as an "internship", which is more or less what it is, to allow people to garner experience. Those who are looking for jobs need to get experience. Such a scheme would provide a wealth of experience in the public and private sectors. There is a huge enthusiasm to allow that to happen. The Minister, Deputy Mary Hanafin, has done considerable work to that end. We are undertaking a structural examination of the new programmes that are available to us. I refer to pathways to progression and to new training initiatives that would be specifically targeted at young and vulnerable people. The House is aware that resources will have to be targeted carefully. The considered view of everyone, which has been supported by the OECD, is that people under the age of 25 are the most vulnerable.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

I concur with the Tánaiste's views. I do not wish to be argumentative in this regard. She has been very fair. I suggest it is time to remove the obstacles, hurdles and impediments that prevent the implementation and application of the Tánaiste's policies. We need to expand the apprenticeship programme. She is right to suggest that many unskilled people suffer from forms of educational disadvantage, including literacy problems. They are important. I understand that the programme being implemented by Bord Bia is going very well. That is one of the areas that has done very well. There is a two-year waiting list for the services of the Free Legal Advice Centres, even though 800 young solicitors are unemployed. Why can something not be tried in that area to get rid of the backlog? If we recognise the caring sector as a real employer, we will gave young people an opportunity to get experience and training, to contribute and to feel they are participating positively. All of those areas should be explored.

We have to wash away the cobwebs of old thinking in this area. We have to start thinking afresh. I am worried that we are too staid. A kind of institutionalisation of thought may be preventing us from going the extra yard to embrace new ideas and make a positive contribution. We need to cater for our young people as real people, rather than as statistics.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

We agree with what the Deputy has said. It is on that basis that we will change the scheme. The Minister, Deputy Hanafin, has facilitated us in the context of volunteerism, for example. She has changed the rules so that one no longer has to be continually available for and genuinely seeking work, which is an issue raised by the voluntary sector. The Deputy was right in what he said about other sectors. We have had a number of representations from people in the caring sector and other sectors who would like to participate in the scheme, but are restricted because they have ten employees. We are examining how we can change those restrictions to allow these things to happen. It will not be perfect because some people will say it will cost them to go to work. Most people are anxious to go to work. It is by interfacing with the labour market that one can find out if there is a job available. We are cognisant of that. Very valuable work can be done. I hope we will take a national perspective on this and that we will not create other impediments as a consequence.