Rising unemployment and job losses
Deputy Gilmore highlighted unemployment of about 252,000 and roughly 100,000 additional job losses in a year, blaming the Government’s economic policies and calling for action. The Taoiseach defended Government measures, including Enterprise Ireland initiatives, public investment, FÁS funding and employment supports, while arguing that job losses reflected the international recession and required private-sector growth.
First, I wish to join the Taoiseach and Deputy Kenny in congratulating Senator Obama on his election as President of the United States and to welcome the promise of a more multilateral approach towards foreign policy by the United States. It is interesting, as one looks across the Atlantic at the celebrations that have been taking place in cities and streets across the United States, what a sense of renewal and fresh hope a change of government can bring to a country.
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Moreover, George Bush was only there for eight years.
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It is becoming purple now. There was no red or blue.
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He had only one election to go through.
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In just over ten minutes time, the Central Statistics Office will publish the latest unemployment figures. Last month, these figures showed that more than 240,000 people were on the live register, which constituted an increase of 80,000 over the figure for the same month the previous year. The latest available figures from the Department of Enterprise, Trade and Employment state there were more than 32,000 redundancies notified to that Department in the past year.
Rising unemployment is the single biggest economic problem that Ireland now faces. It is contributing hugely to the problem in the public finances. Every additional person who becomes unemployed is one less worker paying tax to the State and one more household drawing social welfare and related benefits. Moreover, that is before one counts the social and personal cost of unemployment. I wish to ask the Taoiseach two questions. First, will he tell Members the total number on the live register, which will be published and announced by the Central Statistics Office in ten minutes time? Second, when I asked the Taoiseach last September what initiatives the Government had taken to deal with the unemployment problem, he could not point to a single initiative the Government had taken over the entire summer period. I again ask him today whether he can inform Members of specific initiatives the Government has taken or is taking to halt the slide in unemployment and to put people back to work.
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As for the question on the live register, I understand from memory of yesterday's meeting that the figure is approximately 252,000, or 6.7% of the total workforce. As the Deputy is aware, that figure includes those who are temporarily moving in and out of work and the labour force survey is the most accurate measure of unemployment. However, in respect of the policies that have been enacted by the Government to try to deal with this situation, we already have indicated that as we are in recessionary times, unfortunately we have been obliged to budget for increased unemployment next year. Unfortunately it is true there is an additional cost of approximately €1.25 billion to make provision in the social welfare budget next year for that contingency.
Second, thankfully the Government has been pursuing polices, many of which were opposed by the Deputy in opposition, which have created much employment. Third, as for what the Government now is trying to do, it is ensuring that FÁS and other agencies are providing initiatives and courses to people to help with upskilling. The Government is working on the skills survey outcome, which has come from the people it employs for that purpose. There also is the question of continuing with the correct strategy. First, it is trying to bring order to the public finances, although the Labour Party has opposed all the cuts announced. Second, the Government continues to apply major resources in respect of the strategy on science, technology and innovation although none was applied when the Labour Party was in government.
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Third, the Government continues to work with Enterprise Ireland, which has brought forward new initiatives to help Irish businesses.
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One thousand new jobs a week are needed.
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It is identifying high-performance start-up businesses and is internationalising Irish business. Moreover there has been an increase in exports by Irish business despite a difficult environment in present circumstances. We will continue to do all of that to assist in every way we can those who create business and employment and who are trying to maintain employment to the best extent possible.
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The figure of 252,000 unemployed is shocking. That is almost 100,000 more people out of work than this time last year. It is a shocking level of job losses. Two thousand jobs per week have been lost in the course of the past year. The Taoiseach's business as usual response, that FÁS courses will be provided and that he is continuing with the economic policies of the Government is the most frightening thing of all. Continuing the economic policies of the Government that has landed us with 100,000 extra people unemployed during the past year is the problem. The only thing the budget did for people who are unemployed was to make it harder for them to get jobseeker's benefit.
The Government has abandoned people who are losing their jobs and has turned its back on the unemployed. People who are losing their jobs in the Irish economy today do not want the dole. They want work. They do not want to be on a FÁS course, they want to be in a job. My question to the Taoiseach was not about FÁS courses, nor was it about the kind of generalised statement and response he has given, I asked him specifically what initiatives he is taking to get people back to work. The concerns people who are losing their jobs have are about when they will be back at work. They want work. People who are in employment want some sense that they are not going to lose their jobs. They are not getting that reassurance from the Government.
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He asked about the creation of work. The place to provide the creation of work is in the productive sector of the economy. In the State sector we have already increased employment, which has provided increased public services — more teachers, more nurses, more gardaí, and more of all those essential services. We have provided a level of service that Deputy Gilmore could only aspire to when he was in Government.
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What was Deputy Cowen doing when he was in Government?
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We now need to see greater outcomes, outputs and better co-ordination for the provision of those services. We will conduct that process——
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On the question of how we ensure we deal with the problem of rising unemployment, we have to maintain competitiveness in the economy. Every economy currently in recession is losing jobs. The European economy is losing jobs. The US economy is losing jobs. Jobs are being lost in Asia and everywhere else. That is not to be defeatist about it but it is a fact. If we do not understand the context in which we are operating we are not likely to sort it out.
As to what we are doing about it as a Government, we are, despite our severe financial difficulties, maintaining a public investment programme totalling €8.2 billion in direct Exchequer funding which is providing not only jobs but necessary improved economic infrastructure for this country. That will not totally offset the reduction in activity in the private sector but it is an absolute prerequisite for making sure this economy is ready to take advantage of the upturn when it comes in the world economy, as an open economy such as ours can only do. Our domestic consumer market will not be able to take the reduced activity in terms of what is available internationally.
Let us be fair and honest about it, the Government is maintaining its commitment under the national development plan to provide for capital investment of between 5% and 6% of GDP, which is twice the average of any other government in Europe to which Deputy Gilmore might point in terms of what Government is contributing directly from Exchequer resources to building up infrastructure.
Regarding everything else we are doing in terms of retraining — Deputy Gilmore is running down other State agencies here as well — those agencies are providing good services for people who want other employment. We have made changes to the back to education allowance, which has increased by 24% this year.
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It has increased by a quarter. Excuse me Deputy Gilmore, we have a quarter more in the back to education allowance this year than previously.
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I am explaining to Deputy Gilmore what is happening on the ground where he claims he is in touch. The other point is this——
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You cut the back to education allowance.
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All the other schemes we are bringing forward will be used and adapted to the situation in which we now find ourselves to see what way we can assist those people, whether it is through local employment services or direct contact with FÁS itself, which is to receive funding of more than €900 million next year. Of course I am concerned at the numbers of unemployed.
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No other country has lost that much employment.
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——that the State can provide all the answers to the employment problem is as dated as the ideology he still espouses.
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Some 100,000 people are out of work in the past year.
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The Tánaiste did not get as far as ideology.