Action on Jobs

After a lengthy period in which rising economic growth appeared to have only a marginal impact on the jobless figures, there …

After a lengthy period in which rising economic growth appeared to have only a marginal impact on the jobless figures, there is now increasing evidence that the unemployed are at last benefiting from the rising tide. The latest unemployment figures continue the sharp downward spiral of recent months; the number of jobless - at just over 231,000 - is at its lowest level since December 1990. For 13 months in succession, the Live Register has shown a decrease. The Tanaiste, Ms Harney, not surprisingly sees the latest figures as "clear evidence that the Government's economic policies are working".

Most encouragingly, the level of youth unemployment, among those aged 25 and under, has declined to 48,000, the lowest level since December 1982. And the number of people on the Live Register receiving a social welfare payment has fallen below 200,000 for the first time in some considerable period. It is a remarkable turnaround from the situation five years ago when the Republic had the second-highest jobless figure in the EU and was widely regarded as one of the Union's unemployment blackspots. Today, the Republic's jobless figure is lower than the EU average.

That said, there is little room for complacency. An unemployment rate of 9 per cent at a time when the economy is enjoying an unprecedented and sustained level of economic growth is unacceptable. Substantial progress has been made but the level of long-term unemployment remains stubbornly high and the level of youth unemployment - while declining - is still a blot on the landscape.

The Tanaiste's recently published Employment Action Plan represents a significant shift in policy. Ms Harney plans what she terms a "major re-orientation" with a much more pronounced emphasis across all levels of policy on youth unemployment and the young short-term unemployed. The plan is to ensure that every young person who is unemployed for six months or more is offered some form of training or work experience.

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The Labour Party has raised some concerns about the provision to interview and offer some form of training or work experience to 60,000 young people every year. It has warned that "schemes put in place for the sake of numbers have proven a disaster in the past". There is also some nervousness that the new focus on youth unemployment will siphon off funds from the battle against long-term unemployment. These are legitimate fears; but clearly some kind of radical shift in policy is required if the Government's target of 5 per cent unemployment by 2002/2003 is to be achieved. The Government has been rightly criticised for its failure to allocate significant extra resources in support of its Employment Action Plan.

But the plan is, at the very least, an attempt to address the unemployment problem in a more proactive way. It also marks a first tentative step towards the kind of welfare-to-work approach favoured in Britain. The challenge now is to build on the progress that has already been achieved and to make a more concerted effort to tackle the issue of dependency.