RISING LEVELS of unemployment can sink an economy just as effectively as dysfunctional banks and so the Government should shift its focus to address the needs of those out of work in a more effective fashion. The latest jobless figure of 275,000 illustrates the total inadequacy of last December’s budgetary provision for an additional 3,500 training places.
The number of people out of work for more than a year has quadrupled since 2008, according to the Central Statistics Office. And one in eight members of the workforce is unemployed. These are terrible figures. But they fail to convey the despair and the erosion of self-esteem that enforced idleness can bring to those who have always worked and paid their way. Not only that, the fact that one in three young men is now on the dole has opened the flood-gates of emigration again.
Waiting for jobs to emerge as the result of a falling euro and lower wages is not enough. The creation of long-term industrial jobs will, of course, depend on a favourable tax regime and international competitiveness. But more needs to be done to protect existing employment, to generate domestic jobs and to lay the foundations for future economic growth.
Billions of taxpayers’ money has been spent in the past year on rescuing troubled banks. But the undertakings they gave that, as a consequence of that rescue, lending would flow to small businesses and to home borrowers appear to have been largely ignored. This is an issue Minister for Finance Brian Lenihan should address.
There are reasons for cautious optimism. Industrial production increased by 20 per cent in the first three months of this year. Employment by multinational companies also rose. There were indications an economic corner had been turned. But jobs in the wider economy continued to fall, with the construction industry shedding 50,000 jobs within the past year.
Individuals with third-level qualifications are least likely to be unemployed. Because of that, the proper funding of education and a reskilling of the workforce is of prime importance. Many of those who worked in the construction sector are in need of retraining and assistance. Encouraging the establishment of domestic businesses, while promoting innovation, should become a critical element in plans for future development.
More than a quarter of a million people are now unemployed. They and their families should not be treated as unfortunate statistics. They deserve help and hope and opportunity.