Dáil debates

Thursday, 30 June 2016

Ceisteanna - Questions - Priority Questions

JobPath Implementation

3:55 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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5. To ask the Minister for Social Protection his views on the role of JobPath, with particular reference to the need to ensure a strong focus on upskilling the long-term unemployed. [19049/16]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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The question relates to the mismatch between the needs of the economy and jobseekers, on the one hand, and the central purpose of the JobPath scheme, on the other. It is a very pressing issue. It is not a JobPath but a job cul-de-sac in many ways and the Minister needs to address it urgently.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Participants in JobPath receive intensive individual support and attention over a period of up to 12 months to help them to tackle barriers to employment and find jobs. If they are successful in securing a job, the JobPath provider will continue to assist the client while in employment for a further period of up to 12 months. As part of JobPath, each person is assigned a personal adviser who assesses his or her skills, qualifications and experience, with a particular focus on identifying potential employment opportunities.

JobPath providers arrange for the delivery of a broad range of education and training courses, with a particular focus on upskilling the long-term unemployed. Some of these are provided inhouse, while others are provided by specialist training providers, including the education and training boards. Inhouse courses include CV preparation; interview skills and confidence coaching. External courses include subjects such as adult literacy, IT and various construction-related skills. In addition, JobPath participants may also apply for the back to education allowance to pursue second and third level courses.

To support JobPath providers in referring people for training and education, the Department will extend the 12 month JobPath referral period by the duration of any externally delivered approved training course. This can be up to an additional 26 weeks.. The JobPath companies remain in contact with the clients while they are on such a course.

For any long-term programme of education such as a degree course, the client is withdrawn from JobPath. Clients who complete their long-term course of education and are still unemployed may be referred back to JobPath at that point.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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A key concern is that jobseekers who participate in JobPath are, at best, offered courses of between three and six months duration. We know, given the skills shortages in the economy that have been identified, that the type of training required - FETAC level 5 and level 6 - requires training for a minimum of eight months and up to two years in most cases. The Department spends €300 million on the contract for JobPath. There is a central contradiction between the policy of the Department in its approach to JobPath and the recently published national skills strategy 2025. JobPath promotes work first, whereas the skills strategy promotes a learn first strategy. We know that there are significant numbers of people who left school early, who have very poor skills and who end up being long-term unemployed. The level of training available to them under JobPath is completely inadequate.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The figure of €300 million is over a prolonged period of years, certainly not in one year. Of course, payment is by results and providers are only paid when people are in sustained employment for more than 13 weeks. There is a saving to the taxpayer in the reduced benefit payments. The approach is one of jobs first, which is absolutely right. It is evidence based. The view is that the best thing one can do for a long-term unemployed person is to get him or her back in touch with the labour market and into some form of employment. Just like many in employment, one can upskill, train and study while in employment. We want to avoid what was so common in the past and is still a feature - people on a carousel of training schemes and courses and then more training schemes and more courses without ever actually finding a job. Getting into a job first can often be the right approach. I am sure many Members in the House took courses and studied while they were working.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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It is a contradiction in terms, as I am sure the Minister will agree, to talk about having a sustainable job for three months. A key issue is skills shortages in the economy. Another is the lack of skills among the long-term unemployed. These are the two issues which should be served by the Department, but they are not. Does the Minister accept that potentially there is a significant value for money issue if the Department is tied into a JobPath contract which it cannot change when it is not actually upskilling the long-term unemployed to meet the skills shortages in the economy? Does he accept that there is a need to review the approach to JobPath and ensure, if possible under the contract, the emphasis is switched from getting people into a job at any cost towards identifying the skills shortages of individual long-term unemployed persons and ensuring they are equipped with the skills they need to enable them to find good quality jobs which will be sustainable?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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It is early days; JobPath has only been in place for one year. Of course, we will have a full analysis which is under way to assess what the success rates are in getting people into employment-----

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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Quality employment.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I suspect it will turn out to be very cost effective and good value for money because if it proves to be more effective than other schemes in getting people into employment, the savings for the taxpayer will be enormous because welfare payments will reduce and tax and PRSI income will increase. This will all be studied and produced when we have enough data to make this determination. I do not accept the Deputy's dichotomy that it is a choice between training and upskilling, on the one hand, and working, on the other. In the modern workplace training, upskilling and working go hand in hand all the time. People have a full-time or a part-time job and are at the same time in training, improving their skills or taking a course. I do not accept that it is a case of either-or. In the modern workplace the two go together all of the time.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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Generally, it does not happen in low-paid low-skilled jobs.