Written answers

Wednesday, 15 September 2021

Department of Enterprise, Trade and Employment

Labour Market

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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183. To ask the Minister for Enterprise, Trade and Employment the degree to which Irish persons overseas can be encouraged to return to Ireland in order to meet staff vacancies throughout industry; and if he will make a statement on the matter. [44176/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I understand that the Department of Foreign Affairs has set out a number of actions in its Statement of Strategy 2021-2023 designed to strengthen our connections with diaspora communities and to harness the contribution from the diaspora to support economic recovery.

These include actions to support those who wish to return to Ireland to work and to address barriers facing them, to develop educational and work opportunities in Ireland for members of third and fourth generation Irish diaspora, and to focus on diaspora engagement to strengthen the contribution to economic recovery.

The deputy may wish to seek an update from the Minister for Foreign Affairs on the implementation of these actions.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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184. To ask the Minister for Enterprise, Trade and Employment the extent to which particular efforts are being made to assist employers particularly hit by staff shortages in the wake of Covid-19; if specific measures are being taken to address this issue; and if he will make a statement on the matter. [44177/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The past year has been a difficult year for both employers and employees.  The Government is committed to creating the right environment for a jobs-led recovery and to getting people back to work. Our Economic Recovery Plan commits to ongoing support for businesses and people to provide certainty and confidence for employers to continue to operate and re-employ staff members, with enhanced support for the worst affected sectors, as well as signalling the gradual phasing out of the PUP.  The Plan also sets out medium term policies to underpin a sustainable and balanced recovery and a commitment to invest in infrastructure and reforms to enhance our capability and long-term capacity for growth. 

Although the numbers in receipt of the pandemic unemployment payment continues to reduce, there are still a significant amount of people who remain in receipt of this payment,with the highest numbers in the Accommodation and Food Service Activities (27,545), Wholesale and Retail Trade (22,434), Administrative and support service activities (16,504), and construction (11,725) sectors. 

Extension of the Employee Wage Subsidy Scheme, which subsidises a portion of labour costs, until 31 December 2021 gives businesses the opportunity to trade profitably even when operating under ongoing constraints. Extension of the Covid Restriction Support Scheme to the end of the year, the Business Resumption Scheme, broadening of the Small Business Assistance Scheme for COVID grant and continued deferral of tax liabilities further demonstrate the Government’s efforts to help businesses to continue trading and restore employment.

Our Economic Recovery Plan set an ambitious target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. The Plan commits to further strengthen Ireland’s Skills Framework to ensure people are supported to secure and remain in sustainable and quality employment and ensure employers can access the skills they need. As the PUP is phased out, helping people back to work and reducing the risk of labour market scarring and entrenched long-term unemployment is a priority for Government. This will be achieved through a combination of upskilling and reskilling with substantially accelerated training and skills opportunities and increased activation capacity through Pathways to Work 2021-2025.

The Action Plan for Apprenticeship 2021-2025, which targets 10,000 apprenticeship registrations per annum by 2025, is an important mechanism to address skills shortages in particular sectors. Retail Ireland’s Skillnet Apprenticeship in Retail Supervision and the National Hairdressing Apprenticeship are good examples of programmes providing job-ready qualified professionals in those sectors. My colleagues, Simon Harris, TD, Minister for Further and Higher Education, Research, Innovation and Science, and Niall Collins, TD, Minister of State for Skills and Further Education, recently announced a further extension of the Apprenticeship Incentivisation Scheme until the end of December 2021 which provides financial support for employers who register apprentices to a national apprenticeship.

The pandemic has accelerated previously existing trends and shifts which have potential to significantly reshape business models and sectors.  Many of these changes are likely to be permanent with potential to fundamentally alter Ireland’s economic outlook. Not all previous jobs will return, while capacity constraints may emerge very quickly in certain areas. The twin decarbonisation and digitalisation transition and associated behavioural changes will profoundly alter the economy.

Embracing these transitions will also open up substantial new opportunities for businesses and support significant job creation. Identifying and developing the skills required in growing sectors of the economy is critical to Ireland’s competitiveness.  The Expert Group on Future Skills Needs (EGFSN) advises the Government on projected skills requirements across the Irish economy and makes recommendations on how existing education and training systems and delivery mechanisms, as well as other sources of skills supply, can be improved. The education, training and research sectors will be supported to respond to the challenge. 

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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185. To ask the Minister for Enterprise, Trade and Employment the extent to which employment has fluctuated over the past two years to date; and if he will make a statement on the matter. [44178/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Employment in Ireland in Q4 2019, just before the outbreak of the pandemic, was 2.357 million. Not counting those on the Pandemic Unemployment Payment (PUP) as employed, employment then fell to a low of 1.698 million in Q2 2020 as a result of restrictions introduced to stop the spread of COVID-19. Employment recovered in Q3 2020 as restrictions were lifted but fell again in Q4 2020 and and Q1 2021 as restrictions were re-introduced. By the end of Q1 2021 employment was 1.786 million. The employment rate (share of persons aged 15-64 in employment) has fallen from 70.1% before the pandemic to 52.0% in Q1 2021.

Table 1: Employment and employment rate by quarter, 2019-2021

2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3  2020Q4  2021Q1
Persons aged 15 years and over in employment (COVID adjusted from Q1 2020)* 2,298 2,296 2,323 2,357 1,953 1,698 2,033 1,902 1,786
Employment rate - 15-64 years (%) (COVID adjusted from Q1 2020)* 69.2 69.0 69.5 70.1 57.5 49.7 59.7 55.5 52.0

Source: CSO, Labour Force Survey

* Since Q1 2020 the Central Statistics Office (CSO) has compiled LFS estimates to the usual ILO standards and separate COVID-19 adjusted estimates. The COVID adjusted employment is calculated by subtracting those who were in receipt of the Pandemic Unemployment Payment (PUP) at the end of each quarter. This approach preserves the methodology of the LFS while at the same time providing transparency around the impact of COVID-19 on the Labour Market within Ireland.

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