The high cost of childcare in Ireland is hampering labour market performance by keeping women out of the workforce, according to the European Commission's annual report on labour market efficiency.
The report praises the Government for setting explicit targets in the area of reducing long-term unemployment and unemployment for vulnerable groups. And it acknowledges that, despite the economic downturn, Ireland recorded "remarkable employment growth" in the second half of 2001.
The Commission warns, however, that more action is needed in such areas as lifelong learning to ensure that the most disadvantaged can benefit from increased employment.
"To address low educational levels and workforce skills it seems necessary that Government and social partners expedite the development and implementation of the long-awaited lifelong learning strategy and also intensify efforts to promote in-company training, in particular for older workers," the report says.
There has been no discernible improvement in the gender pay gap or occupational segregation, according to the Commission's findings.
"The gender pay gap calls for a more proactive policy response that is measurable over time. The provision of childcare and, in particular, the problem of childcare affordability requires further action in view of the major barrier it presents to working mothers," it says.
The Commission also criticises the delay in finalising a National Spatial Strategy and points out that the economic slowdown has hit poorer regions hardest.
"Although it is recognised that policies adopted have had an impact in reducing regional imbalance, it is disappointing to note that the slowdown in economic growth, and consequent increase in unemployment has had greatest impact in the Border, Midlands and Western Region, the poorer of the two regions in Ireland," it says.
Introducing the report on the EU's labour market performance, the EU Commissioner for Employment and Social Affairs, Ms Anna Diamantopoulou, said employment in the EU was unlikely to be as badly hit by the economic downturn as it was during the mid-1990s.
She warned, however, that more Europeans were likely to lose their jobs in the near future.
"We do see some worsening in unemployment in the short term and we recognise the uncertainties about consumer and business expectations, on which an early recovery partly depends," said Ms Diamantopoulou.
