Jobs, Jobs, Jobs Marie Sherlock SIPTU 27th Nov. 2010
Job losses per sector up to mid 2010 since their peak between mid 2007 to mid 2008
Three crises‌ a) Youth: over one in three young men aged between 15-24 who have remained the labour force are unemployed. b) Lower- to middle skilled workers: 41% of those on Live register come from manual, craft or production background. a) Regional: North West and South East worst affected by construction downturn, unemployment is in excess of 18% in these areas.
The Response‌ Government’s current strategy: Using supply side solutions (cut unemployment benefit, reduce the minimum wage, dismantle the sectoral minimum rates) to what is a demand led problem- a domestic economy in a slump! Direct impact of cut to NMW -68% of those earning NMW are in hotel, catering, wholesale and retail trades -Little employment growth expected in these sectors in the future as there will be a permanent contraction from boom-time employment levels. -Not going to lead to any direct job creation
Source of jobs growth will largely not be in min wage areas: Financial services, Insurance, Business and communications services Health and ancillary care services And Irish labour force has already proved itself to be adaptable Decline in unit labour costs has exceeded drop in consumer, producer prices and GDP, down 11.2% between 2008 and 2010. In Manufacturing, real effective exchange rate is expected to be down 20% over the three years to end 2011. Lower paid jobs- manual, craft, production already hardest hit by reduction in gross earnings of -9.75% between end 2008 and start 2010.
Fit to meet the current challenge- a new Fás Current Training system not meeting the needs of the crisis No shortage of VEC courses but too short in length and too little work experience. Excess focus in current apprenticeship system on workplace training, but inadequate general education provided. Must step up Recognition of Prior Learning Broader system of apprenticeships to include services, childcare, retail, other manufacturing Greater progression from Post Leaving Certificate to 3 rd level
Enterprise Policy The “Smart Economy” and “Innovation taskforce”- long term thinking at odds with the immediate needs of the crisis Creative economy vs. smart economy
Creating new technologies vs. adapting existing ones
Failure to target distressed but viable companies over the short term. While there is a commitment to review legal fees, waste services, there is; No credit guarantee scheme No debt restructuring scheme Little detail on the funding and cost of new BITES scheme
Regional Question (i) Ireland has punched above her weight in attracting jobs per capita. Ireland was ranked 1st ahead of Germany and Singapore in 2008 in attracting projects. But over 2009 the main source of FDI flows has been in the relocation of multinational’s headquarters to Ireland and the number of new IDA assisted jobs created was half the level of that generated in 2008. ď Ž
Regional Crisis (ii) FDI vs Indigenous debate more a regional issue than a national concern. IDA have set down targets of locating 50% of all projects outside Cork and Dublin by 2014, but how many jobs? Need to re-think National Spatial Strategy
18%+ 14.5%+