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ISKS Conversations autumn 2011 Surviving the collapse: Assessing the impacts of austerity

ISKS Conversations autumn 2011 Surviving the collapse: Assessing the impacts of austerity. Presentation by Bríd O’Brien, INOU . Key Statistics. Responses to-date. High Level Group on the Labour Market: met only once in January 2009.

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ISKS Conversations autumn 2011 Surviving the collapse: Assessing the impacts of austerity

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  1. ISKS Conversations autumn 2011Surviving the collapse:Assessing the impacts of austerity Presentation by Bríd O’Brien, INOU

  2. Key Statistics

  3. Responses to-date • High Level Group on the Labour Market: met only once in January 2009. • NESC only formal mechanism to engage with state; other key stake holders on unemployment / activation. • April 2009’s Supplementary Budget started cutting social welfare payments (JA): 18-19 year olds. • Budget 2010 increased age segregated on Jobseekers Allowance: 18-21 (€100); 22-24 (€146). • Budget 2010 & Budget 2011 cut social welfare payments to people of working age by 8%.

  4. Responses to-date continued • Under the “Helping the Unemployed” Budget 2011 contained four key actions: • Refocus the National Employment Action Plan to provide opportunities for education, training and work experience placements. • Additional 15,000 activation places and supports for the unemployed: TUS; WPP; SDIP. • Extension of Employer Job (PRSI) Incentive Scheme to end-2011. • Transformation of the Business Expansion Scheme into a new Employment and Investment Incentive to boost job creation by SMEs.

  5. Jobs Initiative May 2011 • Single biggest item = cut in VAT in tourist related industries. • Carried on with TUS idea from previous Government: incompatible objectives. • Revamped Skills Development and Internship Programme: NIS or JobBridge: terms not as good. • Work Placement Programme: 5,000 places in public sector? • Construction projects: 6,000+ jobs or 1 job for every 28 jobs lost over the boom-to-bust period. • Additional 5,900 places in the third level Springboard. • Back to Education Initiative; Post Leaving Cert courses; short and long-term FAS courses: additional 15,900 places.

  6. External Policy Drivers • “Europe 2020: smart, sustainable & inclusive growth” • Employment target 75 % of 20-64 year olds. • Ireland’s target 69%-71%  huge job creation. • Organisation for Economic Co-operation and Development report: “Activation Policies in Ireland” • Low ratio of employment service staff / workers. • Used hypothetical cases in high replacement rates arguments: NESC & ESRI used actual expenditure. • Critical of passive social protection system.

  7. Institutional Re-alignment • May 2010: FAS moved from DJEI  DES. • September 2010: Labour Force Division, DJEI  Training and Further Education, DES. • No Minister of State for Labour Affairs. • Jan 2012: FAS Employ & Community Services  DSP. • DSP: all active labour market programmes. • New Government: • National Employment & Entitlement Service (NEES). • SOLAS, new Further Education and Training body.

  8. Reform: opportunity or threat? • NEES & SOLAS could be very interesting. • Culture of enablement vital to realise potential. • Language of Fraud Initiative and tone of public debate unhelpful. • Developing an effective, equitable and efficient system would produce much better results. • Reform must not be equated with contraction: yet strong focus of influential opinion makers. • State key employer but Government seen as incapable of creating jobs!

  9. Key Websites • www.inou.ie • www.redundancy.ie • www.nesc.ie • “Supports and Services for Unemployed Jobseekers: Challenges and Opportunities in a Time of Recession” Report 123 • www.esri.ie • What Can Active Labour Market Policies Do? ESRI Economic Renewal 001 • www.welfare.ie • www.education.ie Thank you for your time

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