Peadar Tóibín (Meath West, Sinn Fein)
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Question 62: To ask the Minister for Finance in view of the upward revision of unemployment projections for 2015 from 10% in April last to 11.6% in the mid-term fiscal statement, his views on the success or otherwise of the April jobs initiative; if he has conducted any assessment of the impact of the various measures contained in the initiative on levels of employment in the State; and if he will make a statement on the matter. [34438/11]

Michael Noonan (Limerick City, Fine Gael)
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My Department's latest economic forecasts were published in the recent Medium Term Fiscal Statement. A return to annual employment growth is now expected to be delayed until 2013 and as a result the unemployment rate will take longer to decline than had previously been anticipated. The weaker labour market recovery is a consequence of slower economic growth. While the economy is expected to expand this year for the first time since 2007 – and the pace of the expansion will gradually strengthen in subsequent years - GDP growth is nevertheless forecast to be softer in 2012 and 2013 than had been anticipated in April. This less benign outlook primarily reflects slower growth in our main import markets. Employment data are presented in net terms and information on gross flows into and out of employment is not available, making it difficult to assess the number of jobs being created. We are also still awaiting data for the third quarter of the year, which will be released in mid-December. I am confident, however, that the measures introduced by the Government in May, such as reducing the rate of VAT in the high value added tourism sector, have played a role in both sustaining and creating employment. The Government recognises that improving labour market conditions represents its biggest challenge, and, accordingly, is giving priority to job protection, job creation and supporting the unemployed.