Written answers

Wednesday, 28 September 2005

Department of Enterprise, Trade and Employment

Job Creation

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 700: To ask the Minister for Enterprise, Trade and Employment his plans to ensure the provision of adequate job opportunities with suitable skill requirements for those unemployed in areas having traditionally high unemployment levels and social and economic deprivation; and if he will make a statement on the matter. [26001/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

In pursuit of the objectives of the national spatial strategy, the efforts of IDA Ireland, Enterprise Ireland and the city and county enterprise boards are directed towards the promotion of employment and investment in all areas of the country. As regards helping those who are unemployed to enter the labour market, under the national employment action plan, FÁS engages intensively those who have been unemployed for six months. They are referred automatically by the Department of Social and Family Affairs to FÁS for advice and assistance.

Services offered by FÁS include vocational guidance and counselling, information on job opportunities, assistance with C.V. preparation and interview techniques, access to employment programmes and skills training. Particular emphasis is placed on the identification of training needs and on the provision of tailored responses. There is also a customised training fund to enable unemployed persons access training that is not readily available through FÁS or other State providers.

In addition, FÁS has developed a high support process as a response to clients who are experiencing multi barriers to entering/re-entering the labour market. This provides access to multi-agency teams which can respond in a flexible and co-ordinated way to clients' needs. The teams comprise representatives from FÁS, the Department of Social and Family Affairs, the Health Service Executive and the vocational educational committees.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 701: To ask the Minister for Enterprise, Trade and Employment the action he proposes to take to address the issue of job relocation to lower wage or more competitive economies; and if he will make a statement on the matter. [26002/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Ireland's economy is undergoing fundamental change, which is affecting all sectors of our economy. Ireland can no longer be seen as a low cost location for investment as our strengths and competitive advantages have inexorably changed. High output and productivity together with high returns to labour in the form of wages, salaries and better living standards now typify Ireland's economy. Ireland is no longer seen as a location for what could be called basic low-tech production and is being overtaken by low wage economies in terms of cost competitiveness.

Naturally a more attractive cost environment abroad will inevitably entice some firms that are unable to generate their required return from the modern enterprise economy into which we have transformed ourselves. A continuing structural evolution of our economy is both unavoidable and necessary to maintain present levels of growth and low unemployment. With this, some plant transfers and other adjustments are inevitable, but where relocation has occurred to date, it has largely been limited to relatively low technology, labour intensive activities.

We have become a more sophisticated and developed economy where the application of technology and intellectual endeavour is becoming more important than simple cost competitiveness as the foundation for growth and prosperity. We now have one of the most open economies in the world where trends in world trade, global business investment and consumer decisions directly influence the pattern of economic growth, company development and job prospects in Ireland probably more so than in other developed economies. Pro-enterprise policies have helped propel economic growth and employment expansion and these have encouraged deeper and stronger links to both the enlarging EU markets and internationally. Consequently, Irish enterprise and society have benefited enormously from the ability of entrepreneurs to operate more profitably both in and from Ireland.

To counterbalance the competitive threat from lower wage competitor economies, our policy is to encourage a move to higher levels of productivity and value added products and services. Sustainable employment will be driven by companies with higher profitability that are more technologically advanced and prove a better fit with the competitive characteristics of our economy, and are therefore less likely to move on the basis of simple cost influences. This new investment will be sourced by a combination of developing existing clients and new investors in existing or new activities or sectors. The enterprise development agencies have a clear mandate to align their operations around this policy objective.

The latest data from the Central Statistics Office's quarterly national household survey in respect of the second quarter of 2005 show that employment increased by 93,000 on the corresponding period in 2004, bringing the total number in employment to a record 1,929,200. This is a remarkable achievement at a time when there is considerable debate and comment about the impact of competition from lower wage economies on employment levels in developed economies.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 702: To ask the Minister for Enterprise, Trade and Employment the degree to which an adequate labour force exists to meet current and future requirements in this country; and if he will make a statement on the matter. [26003/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 704: To ask the Minister for Enterprise, Trade and Employment if he has satisfied himself that there are sufficient personnel available in the workforce to ensure adequate and continued growth in the economy and the ability to meet ongoing and increasing demands in respect of various services; and if he will make a statement on the matter. [26005/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 702 and 704 together.

The number of people in the labour force has reached an all time high as indicated by the latest quarterly national household survey recently released. There are now over 2 million people in the labour force, giving an annual increase of 94,500. Over the past ten years the labour force has grown by over 38%. The growth in the labour force in recent years is due to an increase in the number of working age people in the population, greater participation levels and immigration. I am satisfied that all of these factors combined will continue to contribute to the future growth of the economy.

The working age population at present is 2.81 million and is predicted to increase by 200,000 over the next ten years according to CSO projections. Overall participation rates have increased from 57.9% to 61.5% since 1997, while female participation rates have increased from 45.8% to 51.4% in the same period. Based on these recent trends, it is expected that participation rates will increase further, particularly among females.

Comments

No comments

Log in or join to post a public comment.