Niall Collins (Limerick, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the way specific measures taken by him under the Action Plan for Jobs have benefitted those in the 18 to 24 age group; and if he will make a statement on the matter. [3316/13]

Barry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the way the specific measures taken by him under the Action Plan on Jobs have benefitted the long term unemployed; and if he will make a statement on the matter. [3318/13]

Seán Sherlock (Cork East, Labour)
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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.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Minister of State for his reply. The difficulty is that we are fighting a major fire with a water pistol. I welcome all of the worthy initiatives referred to the Minister of State. I would also welcome if the Minister of State could - I accept he might have this information with him now - update me on the microfinance fund, the pricing of which we are receiving some negative feed on. I would like to know what the uptake is on it.

The Minister and his Ministers of State could use the opportunity of the Presidency to address this European-wide problem. Surely the entire resources of Europe could be used to ensure a consistent Europe-wide effort in addressing unemployment among those aged under 25 years. Our only direct solution appears to be dependence on emigration. That is what is happening.

The Minister of State referred to activation places. An analysis of the CSO figures for December indicates just over 5,000 additional activation places were created in 2012. There will be only 2,000 additional CE places this year. CE schemes provide people with a wonderful opportunity to obtain a skill and gain experience. The Minister of State also referred to gaming. Despite that this Government and the previous Government invested a great deal of resources in the gaming sector, I met a graduate this week who, having obtained a degree in that area, cannot get a job because he does not have work experience. Despite the introduction of all of these initiatives our long term unemployment situation worsened during 2012 and our youth unemployment situation has fallen, but only because of emigration.

Seán Sherlock (Cork East, Labour)
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I acknowledge everything that the Deputy said. There is no getting away from the fact that the rate of youth unemployment is extremely high, including across all of Europe. A strong attempt is being made during Ireland's Presidency of the EU Council to give effect to the youth guarantee and to ensure that we create the climate across Europe, in a way that will benefit Ireland, to ensure a return of people to work.

The Momentum scheme was launched before Christmas last under the auspices of the Department of Education and Skills. There will be specific projects available under that programme to assist those aged under 25 years in a return to employment through training to work opportunities and a graduate activation programme.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Minister.

Seán Sherlock (Cork East, Labour)
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Am I out of time?

Michael Kitt (Galway East, Fianna Fail)
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Yes, unfortunately. There are only four minutes allowed for supplementary questions. I understand Deputy Tóibín also wishes to ask a question.

Dara Calleary (Mayo, Fianna Fail)
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There is something else we can do. This became apparent over Christmas. The difficulties being experienced by people who sign off to take a temporary or three-day week job over Christmas and the nightmare it is for them to sign on again needs to be addressed. Surely the Department of Jobs, Enterprise and Innovation could bring its will to bear on the Department of Social Protection to introduce some flexibility in the jobseeker's scheme so that a person who takes up temporary employment does not lose all his or her benefits or is not left waiting for months for reinstatement of their entitlements when that employment finishes and they have to sign-on again. Surely a measure could be introduced to assist people who are willing to take up temporary work opportunities. The Department of Social Protection should make special provision for people who cannot continue in such employment, for whatever reason, so as to ensure they are not out of pocket.

Seán Sherlock (Cork East, Labour)
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Again, I acknowledge the points made. The Deputy must also acknowledge the deep structural changes that gave rise to this unemployment crisis which, as stated by the Minister, Deputy Bruton, in a reply to an earlier question, was our dependence on construction, in which sector many of the skills were employed. A sudden downturn which results in one having to make a correction of the order of €38 plus billion over a five or six year period requires one to find new ways to create labour market activation measures. We believe we are succeeding. For instance, many jobs have been created through the JobBridge scheme.

I heartily acknowledge that there is a crisis in the area of youth unemployment.

There is also an emigration crisis but we are trying to restructure the education programme between post primary and tertiary education in a way that ensures all of the eggs do not go into the construction-related activity basket. We are staging up investment in science, technology, engineering and maths to create the skillsets for the new types of companies being spun out of campuses such as in the Nimbus Centre at Cork Institute of Technology. This week I attended the Irish Technology Leadership Group event in Cork, and quite a number of campus companies are being created by people in the age bracket we are discussing. A genuine attempt is being made to create. I also believe the Irish Presidency is striving to ensure the concept of the youth guarantee is embedded into political thinking on a pan-European basis so it is seen as a European crisis and not only an Irish crisis.

Peadar Tóibín (Meath West, Sinn Fein)
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We in the Chamber have not got our heads around how serious is the issue of emigration. We seldom debate the issue in depth. In the past four years, six out of ten jobs among those between the ages of 15 and 24 have been wiped out. A total of 70,000 people in the demographic have emigrated since the Government took office, with 134,000 people in the same demographic emigrating in the past four years. The total population of the demographic is 630,000 people. This emigration has had a shocking effect on the areas which have been depopulated. We have deleted in large part one of the most energetic sections of our society. This has had a proportionately much bigger effect on unemployment levels than anything the Government has done. We need a singular debate on the issue of emigration.

This goes back to what Deputy Wallace stated, and the IMF has also said it. The critical point of fiscal drag is a negative multiplier whereby every euro taken out of the economy reduces the economy by more than a euro. I believe wholeheartedly we are at this stage or have gone past it. We speak about ensuring the books balance, but the books are balanced not only by cutting but also by growing. If the Government grows the economy it will not have to cut the wages of low-income individuals as much and ensure we do not forcibly exile such a large and significant part of our society.

Seán Sherlock (Cork East, Labour)
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To repeat the point, we all agree the problem of emigration is scaring the social fabric. However, I do not agree with the rhetoric that it is all negative.

Peadar Tóibín (Meath West, Sinn Fein)
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On balance it is negative.

Seán Sherlock (Cork East, Labour)
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A hell of a lot of initiatives are taking place in our third level institutions, and out there is a boundless creativity which does not work its way into the discourse in a House such as this. One has only to go to these institutions and meet these people. I take issue with the point made by Deputy Tóibín on this.

Peadar Tóibín (Meath West, Sinn Fein)
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On balance it is negative.

Seán Sherlock (Cork East, Labour)
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I repeat the point that if all one's eggs are put into the construction basket and a downturn in the sector occurs, it will give rise to emigration to new areas where there are opportunities such as western Australia, Canada and North America. This is exactly what we are seeing happen. From a sectoral point of view we are seeing this trend. We want to reverse this by creating the programmes we have to allow people with this skillset to retrain and move into other sectors. We are doing this and by degrees we are slowly succeeding in this vein.