Monday, May 16, 2011

Social Justice Ireland says jobs initative is not radical enough

Social Justice Ireland (SJI) says the Government’s jobs initiative will make no impact on Ireland’s record level of long-term unemployment. 

“The proposals contained within the jobs initiative are welcome, as far as they go, but there will be no major reduction in the numbers of long-term unemployed for the foreseeable future without far more radical action being taken aimed directly at reducing the numbers long-term unemployed,” said Fr Seán Healy, director, SJI.

The total value of new spending and cuts in VAT, PRSI and air travel tax is €470m in 2011.  

Only €29m of this is allocated to labour activation measures, according to SJI, which stated, “This means that long-term unemployed people will receive little benefit from this initiative.  Government must move swiftly to address the situation where, for the first time in Ireland’s history, over half of those unemployed are in fact long-term unemployed.  More radical initiatives are urgently required.”

The group added that initiatives focused on improving job creation and protecting jobs that already exist are very welcome and necessary but they should not be allowed create an illusion that Ireland’s unemployment crisis will be resolved in the period immediately ahead. 

“The transition from near full employment to high unemployment has been a significant and shameful story in the current recession.  Action is urgently required to change this situation.  The jobs initiative is a first step but a very long road stretches out ahead.”

SJI had presented proposals to Government that would create 100,000 part-time jobs for long-term unemployed people over a three-year period. 

This proposed programme would require additional funding of €150m as well as money currently being spent on social welfare payments to participants.

The Union of Students in Ireland welcomed the creation of 5,000 internships, but warned that the promise of €50 per week might not be enough to keep graduates from emigrating.

The jobs initiative includes the following points:
  • A 0.6% levy on private pension funds
  • A removal of Air travel tax
  • Reduction of lower rate of VAT and PRSI rate
  • Restoration of minimum wage from €7.65 to €8.65
  • School building/improvement worth €30m
  • An increase in training and internship places
CSO data and economic forecasts for the remainder of 2011 indicate that unemployment will stabilise at an annual rate of just over 14 per cent of the labour force for 2011, having been 4.6 per cent in 2007.

The CSO data indicates that there are now over 150,000 people in long-term unemployment and that this figure has doubled in one year.

Given the current crisis, many of those who entered unemployment in 2007 and 2008 have remained unemployed for more than 12 months and have therefore become long-term unemployed.