Written answers

Thursday, 28 February 2008

Department of Enterprise, Trade and Employment

Job Losses

5:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 33: To ask the Minister for Enterprise, Trade and Employment his views on the continuing loss of jobs in small construction firms; the analysis his Department has conducted on this employment sector; the action he is taking to seek alternative employment opportunities for those affected; and if he will make a statement on the matter. [8445/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The increase in unemployment in the construction sector, while unwelcome, must be seen in the context of the major increase in employment over the last number of years, an increase which was particularly strong in the construction sector. The anticipated period of adjustment is now being experienced in new house building. However, overall employment is forecast to continue to grow, albeit at a reduced rate than heretofore, thereby providing new job opportunities.

The Government is giving priority to fully implementing the National Development Plan in order to boost the productive capacity of the economy. Infrastructural spending under the Plan will help to absorb some of the excess capacity which is emerging from the new house building sector.

The most recent FÁS/ESRI Employment and Vacancies Survey for December 2007 shows that the percentage of firms reporting vacancies across all sectors is 14%, which is in line with the average for the year. The current rate for firms reporting vacancies in the construction sector is 8%, which is slightly below the 9% for the same period last year. While it is true to say that construction employment is decreasing employment in the sector has not collapsed.

FÁS provides an integrated support service for anyone made redundant including those who might lose their jobs in the construction sector. This involves information sessions, skills analysis, training/retraining courses and job placement. In the delivery of these services, FÁS liaises with other relevant agencies such as Enterprise Ireland, IDA Ireland, the City/County Enterprise Boards and the Department of Social and Family Affairs. FÁS also works closely with the agencies to identify and support individuals who wish to start their own business.

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