Dáil debates

Wednesday, 27 November 2013

Ceisteanna - Questions - Priority Questions

Youth Unemployment Measures

9:30 am

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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2. To ask the Minister for Jobs, Enterprise and Innovation if he will detail the increase in youth employment since the Government came into power; and the impact of the Action Plan for Jobs 2013 in getting young persons into employment [50615/13]

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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As the Minister is aware, youth unemployment is an issue that is not unique to this State but is one that is plaguing the whole of Europe. What impact had the Action Plan on Jobs last year on addressing youth employment and what proposals are there in the action plan on jobs for next year?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Young people have been the group most seriously affected by the collapse of employment following Ireland’s economic crash. However, youth employment has stabilised in the past year and appears set to start growing as the economic recovery continues. Recent labour market figures published by the CSO indicate that the number of young people under 25 years of age in employment increased by 3,200 in the year to quarter three 2013. The number of young people who are unemployed fell by 13,600 in the past 12 months.

The Government is working to tackle the issue of youth opportunities in the labour market through the combined efforts of the Action Plan for Jobs and Pathways to Work strategies. The Action Plan for Jobs has sought to bring about a transition in the jobs and enterprise sectors to develop new job opportunities in sustainable sectors and to create 100,000 jobs by 2016. This work will continue vigorously over the coming years. However, it is encouraging to see record growth of jobs in our exporting sectors and signs of progress across a range of sectors. It will be vital to sustain this growth in employment in order to deliver job opportunities to young entrants.

Through Pathways to Work, the Government has brought in a range of new initiatives to support young people looking for employment such as JobsPlus, JobBridge, Springboard, Momentum, and the ICT action plan, which are delivered by the Department of Social Protection and the Department of Education and Skills. The Government is taking steps to increase the numbers of places and make other enhancements to those schemes where possible. For example, JobBridge has increased from 5,000 places initially to 8,500 places being currently available. The JobsPlus initiative, which is currently available to those who are unemployed for 12 months or more, is being extended from 1 January next to those under the age of 26 who have been unemployed for six months or more.

My Department, together with Enterprise Ireland, is also examining options for CEB-led initiatives aimed at promoting youth entrepreneurship, including a mix of financial supports for business start-ups, feasibility studies and mentoring. It is also working with the Department of Social Protection and the Department of Education and Skills to develop the Youth Guarantee, in line with the agreement reached under the Irish Presidency earlier this year.

9:40 am

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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I note yesterday's CSO figures, which are encouraging and welcome, but the reality remains that since the Government took up office, 50,000 fewer people are in employment. In the 24 to 35 year old bracket, approximately 19,000 fewer are in employment, although many of them have emigrated. Last year's Action Plan for Jobs contained 333 recommendations but only five related to youth unemployment. Next year's action plan has seven themes, none of which targets youth unemployment. How big a part will the youth guarantee play in next year's action plan? I acknowledge the plan has not been ironed out and the details have not been published, but a significant pot of money is available from Europe to help our young people back into employment.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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The youth guarantee was negotiated under the Irish Presidency. A sum of €3 billion will be provided by the European Social Fund and a new budget line of €3 billion will also be provided. We will submit our plan to the EU by the end of 2013. An interdepartmental group has been set up in this regard comprising the Departments of Social Protection, Education and Skills, Public Expenditure and Reform, Children and Youth Affairs, Foreign Affairs and Trade, the Taoiseach and our Department, and they are all working on the plan.

It is important, though, to acknowledge 1,600 jobs a week were being lost in the three years before we took office but now the economy is creating 1,200 jobs per week. Those jobs are being taken up by young people as well. There has been a positive change in employment over the past 12 months.

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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The Minister for Social and Protection and the Taoiseach were in Paris recently to discuss the youth guarantee scheme. The Government has mentioned the provision of approximately €200 million for the scheme, but the National Youth Council of Ireland and the International Labour Organization reckon the State needs to invest between €400 million and €435 million to adequately tackle youth unemployment. Approximately €14 million has been set aside next year to target job creation for young people. I do not know what the plan will be because it has not been worked out yet, but there has to be a change in policy when it comes to youth unemployment. The Minister of State mentioned JobBridge. The Minister for Social Protection often refers to a 60% progression rate from the scheme into employment but the progression rate for young teachers is less than 30%. It may be working in some areas but JobBridge and other schemes are not resulting in full-time employment for young people in other areas.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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A total of 19,500 young people have left the live register to take up work in the past 12 months. We have had four consecutive quarters of job creation.

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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That is to be welcomed.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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JobBridge is not the panacea for the teaching profession, but the evidence is that we are creating more teaching jobs through the Department of Education and Skills by virtue of demographic changes with an increase in the birth rate, and the Deputy will acknowledge that many projects are under way to reflect that in our own county of Cork. JobBridge is a labour activation measure, which is having a positive effect on getting people into work. Approximately 500 job matches have been taken up as a result of the JobsPlus scheme. MOMENTUM comprises a €20 million package offering 6,500 training places through 36 education providers in 87 locations. We are conducting a review of apprenticeships because if one looks at where jobs were lost, young people were last in, first out. We need to examine, in particular, how we can upskill those who lost jobs in the construction industry, and that is why have introduced Springboard, the start your own business initiative, and the home renovation scheme, which will have a positive knock-on effect in getting young people back into the workplace. There is a vigorous and robust response to this issue, but I take the Deputy's point about the youth guarantee. The plan is being formulated and we can discuss that when it comes to fruition.