Written answers

Thursday, 12 November 2009

Department of Enterprise, Trade and Employment

Unemployment Levels

5:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 78: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she will take to address the continuing employment crisis in view of the continuing high level of unemployment indicated by the live register figures for October 2009; her plans to provide new training opportunities for those who have lost their jobs and to encourage the creation of new employment opportunities; and if she will make a statement on the matter. [41047/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Ireland is currently experiencing, as is the rest of Europe, high unemployment, with latest figures indicating our unemployment rate at 11.6%. According to the Live Register there were 412,400 people claiming unemployment benefits at the end of October 2009. This is 7,440 (1.8%) less than September 2009. The Live Register is 161,700 (64.5%) higher than this time last year. Positively, the year-on-year increase for October is continuing to decline from its peak of 197,800 and furthermore the Seasonally Adjusted figure for October is 422,500, which is a monthly decrease of 3,000 from September.

A key priority for the Government is to support those most vulnerable to detachment from the labour market through active labour market. This is achieved through active labour market policies and our aim is to minimise the drift of people into long term or very long-term unemployment. In order for the Government's labour market policies to be effective, it requires a sustained, co-ordinated, integrated approach to jobsearch, training, education and work placement supports.

This is why I have doubled the provision of training and work experience places managed by FÁS to over 130,000 and I have increased the referral capacity of FÁS Employment Services from the Department of Social and Family Affairs to 147,000 persons in 2009. I have also introduced a number of labour market activation policies that will provide support to those who need it most.

The Work Placement Programme, which provides 2,000 six-month places to individuals who are unemployed, is in operation. Participants on the scheme retain their social welfare entitlements. In response to interest in the programme the criteria of the Work Placement Programme are currently being reviewed and it is expected that once this review has been completed the programme will be more accessible to companies and participants.

FÁS are also managing the short-time working training programme, which provides training to people on systematic short time for the days they are not working. The training will last for a year and individuals will retain their social welfare entitlements while on the programme.

An additional 400 places have been provided in the Community Employment Scheme bringing the total number of places to 22,700 this year. My Department and the Department of Education and Science are jointly funding the provision of 1,500 part time third level places at undergraduate level for the unemployed. The Department of Education and Science are also funding 1,000 part time places at postgraduate level. Individuals participating in either programme will retain their social welfare entitlements.

The Government has also introduced specific initiatives, which will enable approximately 4,000 redundant apprentices to progress their apprenticeships or receive training.

The Employment Subsidy Scheme has been introduced to support the maintenance of vulnerable jobs and prevent people from being made redundant in this challenging national and global economic environment. Given the surprising low level of interest in the original Employment Subsidy. I have decided to have a Second broader Call for applications with extended eligibility criteria open to both exporting and non-exporting firms. The Second Call will be open to many companies that were not eligible to apply for the First Call. Enterprise Ireland will again manage the Scheme and will shortly advertise details of the Second Call.

The Government is taking specific measures to ensure that job creation is optimised to its full potential. Enterprise Ireland has prepared a new recovery strategy to identify the actions that are being undertaken to help clients in 2009. This strategy has refocuses Enterprise Ireland efforts in strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of their client base. To date they have supported over individual companies this year.

In addition the Enterprise Stabilisation Fund was launched earlier this year. The Fund, administered by Enterprise Ireland, is an initiative aimed to support viable but vulnerable exporting companies who are experiencing difficulties because of the current economic climate. Client companies of Enterprise Ireland, IDA, Udaras Na Gaeltachta and Shannon Development across all sectors within manufacturing and internationally traded services are eligible to apply. To the end of October, Enterprise Ireland has approved approximately €47.7m for 109 projects under this fund.

On a daily basis, IDA is working with its client companies making every effort to keep those clients operating in Ireland while minimising the job losses encountered. Despite the economic downturn, Ireland continues to be an attractive location for FDI. IDA Ireland has already had a significant number of new investment projects approved and announced in 2009. To date this year there has been 44 announcements, with a combined investment of €622.5m and the potential to create 2,560 jobs.

In addition, during 2009 the County and City Enterprise Boards have reported a significant increase in the number of informal queries from members of the public in relation to setting up their own businesses over the last few months with many Boards providing additional Start Your Business Courses and increased levels of mentoring for owner managers who are experiencing trading difficulties in order to meet the demand out there. The Boards will continue throughout 2009 to support enterprise development and job creation through the provision of both direct and indirect assistance to micro-enterprises and will ensure that available funds are targeted to maximise entrepreneurial development at local level.

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