Written answers

Wednesday, 21 June 2006

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 116: To ask the Minister for Enterprise, Trade and Employment the measures he has taken to monitor and respond to the reasons for job losses in view of the 12 per cent increase in redundancies in the first quarter of 2006; and if he intends to formulate employment solutions for vulnerable industries. [23952/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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My Department operates an internal Early Warning System of potential job losses and firms in difficulty, based on material provided on a confidential basis by IDA Ireland, Enterprise Ireland and Shannon Development. This information includes details as to why each particular situation has developed. While the number of redundancies was higher in the first three months of 2006 than the corresponding months in 2005 this trend has ceased and the number of redundancies in April and May were less than in the same months in 2005.

Changes in the level of redundancies must be viewed in the context of sustained employment growth. The latest data from the Quarterly National Household Survey for Quarter 1 2006 shows that employment increased by 89,800 (4.7%) to 1,998,100 in the year while the rate of unemployment continues to be low by both international and historical standards at 4.2%. In addition, the latest FÁS/ESRI job vacancy data indicates that the demand for labour remains strong. This indicates that the Irish labour market remains extremely buoyant, with job creation far exceeding job losses.

Where redundancies occur, the State agencies under the aegis of my Department (FÁS, Enterprise Ireland and the IDA) endeavour to find alternative employment for those involved. In addition, to the existing initiatives aimed at low skilled workers and workers in vulnerable industries there are proposals outlined in the new social partnership agreement which provide for a number of initiatives aimed at workers in vulnerable industries. These include enhanced programmes to upskill the low-skilled, older workers and those in vulnerable employment and the establishment of a High Level Working Manufacturing Group which will review the challenges facing the sector and identify further measures to meet those challenges.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 117: To ask the Minister for Enterprise, Trade and Employment his views on the high number of persons affected by collective redundancies in the first five months of 2006 relative to previous years; if his attention has been drawn to the fact that if such collective redundancies continue at the same rate for the remainder of 2006 they will exceed the number for 2001 when the dot-com bubble burst; and if he will make a statement on the matter. [23487/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The number of employees who received collective redundancy notice as advised to the Department under the Protection of Employment Act, 1977 has seen an increase for the first five months of 2006 of 44% over the same period last year. I should point out that the more reliable indicator of redundancies relates to those people who have actually been made redundant during the same period. The number for the first five months of this year is 9933 an increase of 6.6% over the same period last year. It is not possible to say at this stage what the final tally will be by year-end.

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