Business recruitment difficulties
Noel Grealish said businesses in Galway, especially hospitality, were struggling to recruit enough staff and could not operate at full capacity. The Taoiseach said full employment was a positive national achievement, while acknowledging the recruitment pressures.
I have a number of issues that I want to raise with the Taoiseach today. Over the last number of weeks I have met businesses across a range of sectors in Galway, from developers to healthcare providers. One of the main concerns they all have in common is a difficulty in trying to recruit staff. A lot of businesses, in particular those in the hospitality sector, which includes small restaurants and coffee shops, are very worried about their future and the viability of their business. A significant number have told me that they cannot operate at full capacity as they do not have the required number of staff to do so.
The issues they raised are the restrictions in employment permits and accommodation for their workers. One businessperson told me the only way he could secure staff was to provide accommodation for them. He was in the lucky position whereby he was able to provide accommodation for six staff members. People who are applying for jobs are now asking potential employers if they can secure accommodation for them, but most of them are not in a position to do that. The accommodation crisis is compounded by the staff shortage problem.
I have met a number of contractors who cannot get qualified staff such as blocklayers, plasterers and carpenters. As a result, they are not in a position to build which, in turn, has a huge knock-on effect on the housing supply. This situation is likely to get worse.
In response to a recent parliamentary question I tabled to the Minister for Health, I was informed of over 800 job vacancies in Galway’s main public hospitals, including more than 170 nursing and medical professionals. A recent survey by the Manpower Group showed that four in five Irish companies are struggling to attract talent as Ireland endures its worst skills shortage for 17 years. These staff and skills shortages are across all sectors of society, not just the ones I have referenced today. This has a knock-on effect on many parts of our society, for example by limiting economic growth, causing delays in dealing with our housing crisis and increasing waiting lists in our health service.
There is a major problem in the work permit system. It needs to be simplified to enable qualified people from abroad to apply for work permits and fill the much-needed positions in all sectors of our society as quickly as possible. Homecare workers were mentioned in this morning's Private Members' debate. My colleague Deputy Berry mentioned that those who come here from the Philippines are brilliant workers in the health and homecare sectors. The permit system for them should be simplified. I ask the Taoiseach to look at the whole process, make it a lot simpler and try to get much-needed workers into this country for the hospitality, construction and health services.
Comment on this
I thank the Deputy. The fact is that we are now experiencing full employment in Ireland. Some economists say that we are beyond full employment and that there are more vacancies than there are people available and qualified to fill them. This is only the second time in our history that we have achieved that. While that creates real problems, some of which the Deputy has touched on, in the round it is something to be celebrated. There are 2.6 million people at work in Ireland. Unemployment is almost at an all-time low. Female participation in the workforce is at an all-time high. Youth unemployment is also close to an all-time low. That has some negative consequences. There is a cloud to that silver lining, namely the fact that recruitment and retention is a real problem in the public and private sectors, in urban and rural Ireland, in well-paid jobs and poorly paid jobs and in large and small firms. Almost nobody is not facing some challenges around recruitment and retention at the moment, and the Government needs to act on that.
The kinds of things we are doing include increasing the number of places in our universities and the number of apprenticeships so that more skilled people come through. We will have about 9,000 apprenticeships this year and will hit our target of 10,000 ahead of 2025. We are also investing more in upskilling and doing the best we can to enable people who are currently on welfare and are remote from the labour market to join it. Many people currently in receipt of social welfare payments could, with a little more support, enter the labour market. We are working on that through activation mechanisms, led by the Minister, Deputy Humphreys.
Another solution is work permits and work visas for people coming from outside the European Union. Those from the European Union do not even need a work permit or work visa; they can just come here. People from outside the European Economic Area need a work permit and a work visa. We issued 40,000 such permits last year, which is a very high number. The turnaround time for a work permit or work visa is now two or three weeks.
We have also relaxed the rules around who can come here. Pretty much anybody with construction skills can qualify for a work permit because we need them desperately in order to build more housing. For the first time, we allow people to come here for the purposes of working in home care. Those are the kinds of changes we have made. The list of eligible professions and occupations is currently being updated. That should be done by the summer. We are also trying to bring in a new category of work permit around seasonal work, which is particularly important in the agrifood sector as well as in tourism and hospitality. Action is being taken at every level to try to increase the number of people who are in the country already and have skills and are able to work, as well as opening pathways for legal migration into the country where people have skills we need.