Ireland has moved from having the second lowest unemployment rate among the EU-15 countries two years ago to the second highest. The rate of unemployment which stood at 4.5% in 2007 is expected to reach 13.2% this year, rising to 17% in 2010.
The downturn in the economy which commenced in the construction sector has now spread to other sectors principally manufacturing, hospitality and transport and affects persons not previously exposed to unemployment. Although unemployment is more common among persons with low and mid-level qualifications, a proportion of persons with third-level qualifications are also experiencing unemployment. In addition, the number of people entering apprenticeships in 2008 was 44% lower than in 2007.
The sharp rise in unemployment means that there are no labour shortages in Ireland at present and few skill shortages except in areas of specific expertise identified in two recent FAS reports1. FAS, the Training and Employment Authority has had to review its training courses to respond to the growth in unemployment and the changing profile of unemployed people. Programmes have been opened up to all unemployed persons whatever their previous educational experience. This includes an extensive portfolio of training programmes in the environmental and energy technology.
The Governments response to the employment crisis has been set out in a supplementary budget3 containing measures to provide additional training in a wide range of programmes of differing duration. The measures include:
Work experience scheme: A Work Placement Programme offers unemployed people, including unemployed graduates, the opportunity to obtain 6 months work experience on a work placement with a company while at the same time retaining their social welfare status and entitlements.
Pilot training scheme for workers on short time: The pilot training scheme for companies that have placed staff on a 3-day week provides 2-days training a week and income support to upskill employees for a period of up to 52 weeks.
Start your own business: These courses are being offered to redundant workers including construction professionals, managers and craftspersons. Even before the downturn, Ireland ranked fourth across OECD countries and second in Europe for the number of early stage entrepreneurs, with 8.2% of adults in Ireland engaged in entrepreneurial activity in 2007.
Employment Subsidy Scheme4: The Government recently announced a 250 million jobs subsidy scheme aimed at protecting vulnerable jobs. It will provide a subsidy of 9,100 per employee over 15 months to qualifying exporting companies in the manufacturing and internationally traded services.
Online courses: There has also been increased provision of FAS on-line courses which are available free of charge to those on unemployment benefit. They comprise online and online blended courses whereby learners can combine home study with structured training in the form of scheduled workshops which will reinforce and supplement the online training.
- In terms of apprenticeship, the focus has been on enabling redundant apprentices to complete and gain a qualification. Funds have also been provided to place redundant final-phase apprentices with employers in Germany. Special programmes have also been developed to improve the general education of apprentice students who want to progress to other higher education programmes or become self-employed when they finish their apprenticeships.
Current VET policies recognise the major role that second chance and further education has in tackling the current unemployment problems. There are now more places on offer in the Post-Leaving Certificate vocational education sector. In higher education, more part-time places are being provided for the unemployed at both undergraduate and postgraduate levels. Participants in these courses retain their social welfare benefits.
1 Behan, J. et al: National skills bulletin 2009. Dublin: FAS, 2009.
Fox, R: Job opportunities in the down-turn. Dublin: FAS, 2009.
2 National Economic and Social Council: Irelands five-part crisis: an integrated national response. Dublin: NESC, 2009.
3 Department of Finance: Supplementary Budget - Annex F. April 2009
4 Department of Enterprise, Trade & Employment: Employment Subsidy Scheme press release
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