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One of the major achievements of recent years has been the increase in employment and the reduction in unemployment, especially long-term unemployment. In 1991 there were 1,155,900 people employed in Ireland. That figure has increased by almost one million to reach 2,140,900 in 2007; during early 2006 the employment figure exceeded two million for the first time in the history of the state. Overall, the size of the Irish labour force has expanded significantly and today equals over 2.25 million people, almost nine hundred thousand more than in 1991 (see chart 3.3.1). Over the same period, the number of people unemployed [measured on an International Labour Office (ILO) basis] has gone from 198,500 to 106,100. In the intervening years, the number unemployed had exceeded 220,000 (in 1993). This transformation is remarkable and has marked a major, and very welcome, shift in Irish society. It has also provided new challenges as well as raising new questions.

^{The numbers unemployed}

At the outset it is important to outline what the term ‘unemployment’ means. The CSO Quarterly National Household Survey (QNHS) unemployment data use the definition of ‘unemployment’ supplied by the International Labour Office (ILO). It lists as unemployed only those people who, in the week before the survey, were unemployed and available to take up a job and had taken specific steps in the preceding four weeks to find employment. Any person who was employed for at least one hour is classed as employed. By contrast, the live register includes part-time employees (those who work up to three days a week), seasonal and casual employees entitled to Unemployment Assistance or Benefit.

As chart 3.3.2 shows (see ahead), the period from 1993 was one of decline in unemployment. During mid-2001 Irish unemployment reached its lowest level at 3.6 per cent of the labour force. Since then the slowdown in the international and domestic economy has brought about some increases in the rates. By August 2001 unemployment, as measured by the QNHS (ILO basis), stood at a rate of 4.2 per cent (78,500 people). A year later, in August 2002, it had increased by 7,700 people, giving an unemployment rate of 4.6 per cent. The corresponding figure in 2003 recorded an unemployment rate of 5.1 per cent or 98,800 people; in 2004 the figures were 4.7 per cent or 93,900 people; and in 2005 the CSO recorded an unemployment rate of 4.6 per cent or 96,700 people. During 2006 unemployment exceeded 100,000 for the first time since mid-1999 with a total of 104,800 people recorded as unemployed in mid 2006. This figure notably decreased in late 2006 meaning that the final figures for that year recorded a total of 88,700 people unemployed corresponding to an unemployment rate of 4.1 per cent. In August 2007 the figure reached 106,100 people and again reduced to a lower figure later
in the year.

^{Chart 3.3.1: The Numbers of People in the Labour Force and Employed in Ireland, 1991-2007.}

Source: CSO, QNHS various editions
During the past year Ireland has been dramatically successful from the perspective of job creation and controlling unemployment. As table 3.3.1 shows, there was a substantial increase in the labour force of 68,900 during 2007; this adds to the 92,200 who joined in 2005 and the 82,900 who joined in 2006. This occurred due to increased labour force participation by various groups, demographic factors and the arrival of immigrant workers (CSO, 2007:2-3). Accompanying that increase was a large increase in employment (of 67,600).

Of the 106,100 people classified as unemployed in 2007, 63,400 were men and 42,700 were women. The corresponding unemployment rates for men and women are 4.9 per cent and 4.4 per cent respectively. Overall some 89,200 of the unemployed are recorded as searching for full-time work, while 16,900 reported that they are seeking part-time employment. The latter group is primarily comprised of unemployed females (12,800 women).

^{Youth unemployment}

An examination of the age structure of unemployed people indicates a sustained problem of youth unemployment. As table 3.3.2 shows, this is particularly of concern among those aged 15-19. Over the last year their unemployment rate has decreased to 14.5 per cent. For those aged 20-24 their unemployment rate has also fallen reaching 8.3 per cent in 2007. In the context of an overall unemployment rate of 4.7 per cent these figures are of concern. Given the projections for further increases in unemployment in the years ahead, the fate of any low-skilled individuals who have become unemployed is a concern; a point also made by NESF in their document entitled Creating a More Inclusive Labour Market (NESF, 2006). Depending on the extent of the economic slowdown, the potential for these individuals to become long-term unemployed must be monitored.

Another factor relevant to any assessment of youth unemployment is its association with other societal problems and in particular suicide. The results of an eight-year study of suicides in County Kildare (1995-2002) was published in the Journal of Clinical Forensic Medicine by McGovern and Cusack (2004). One of their key findings was that unemployed males under the age of 30 were the most likely group to commit suicide.50

Long-term unemploymentAlongside the decline in the overall unemployment numbers chart 3.3.2 shows that since 1994 the numbers classified as long-term unemployed (unemployed for more than one year) have decreased. However, since 2002 this trend has begun to change and the overall number of people in this category has increased.

^{Chart 3.3.2: The Numbers of Unemployed and Long-Term Unemployed in Ireland, 1991-2007.}

Source: CSO, QNHS various editions

Of the 106,100 people unemployed in Quarter 3 of 2007, 76,400 were unemployed for less than one year, while 29,700 were long-term unemployed. This figure marked a small increase since 2006. However, both the 2007 and 2006 longterm unemployment rates are considerably smaller than the 10.4 per cent long-term unemployment rate recorded in 1988 and they mark a major decrease in the level of structural unemployment. It also illustrates the extent to which Irish unemployment levels are now dominated by frictional factors. However, the return of cyclical unemployment in late 2001, and throughout both 2002 and 2003, underscores the necessity to maintain a focus on ensuring that the long-term unemployment problem is not allowed to return.

^{Women returning to employment}

The growth in employment over the last few years has particularly impacted on women. Rates of female labour-force participation continue to rise. Noticeably, many of these female entrants are women returning after having had a family. A report published in September 2002 entitled Getting out of the House: Women Returning to Employment, Education and Training presented some important findings concerning the situation of these women.

The report, by Russell et al of the ESRI, found that almost two-thirds of these women returning tended to have low levels of education, some 38 per cent had no qualifications at all. It also showed that 71 per cent of returnees chose to work part time and that overall the level of payment received by these women was below that which they had received before they left the labour force. These women tend to be “downgrading” their expectations of employment with almost 50 per cent of women stating that they possessed the qualifications and skill to perform a more demanding job than that which they had returned to do.

The report suggests that this phenomenon is due to a series of obstacles which returning women face. These include a lack of childcare facilities, in particular afterschool childcare, and a lack of flexibility among employers towards the lifestyle demands of these women. A further problem is the lack of information detailing the availability of re-training programmes and entitlements for these women.

While there should always be adequate support for women choosing to stay in the home, there should also be adequate support for women choosing to return to the labour force. Policy innovations are required if this situation is to change. It is clear that opportunities exist for these women and that with some changes these can be made available.

^{Work and people with disabilities}

The results of the 2004 QNHS special module on disability revealed that of all persons aged between 15 and 64, 10.9 per cent indicated that they had a longstanding health problem or disability (CSO, 2004). This equates to 298,300 people in Ireland, of whom 155,800 were male and 142,500 were female. Of those individuals only 37 per cent (110,800) were in employment. This is a figure considerably below the participation rate of the overall population in 2004 which stood at 61 per cent. Furthermore, of those employed approximately one-quarter worked part-time while the remaining three-quarters were in full-time employment.51

This low rate of employment among people with a disability is of concern. Apart from restricting their participation in society it also ties them into state dependent low-income situations. Therefore it is not surprising that Ireland’s poverty figures reveal that people who are ill or have a disability are the group with the second highest risk of poverty (see table 3.1.4). CORI Justice believes that further effort should be made to reduce the impediments faced by people with a disability in achieving employment. In particular consideration should be given to reforming the current situation where many such people face losing their benefits, in particular their medical card, when they take up employment. This situation ignores the additional costs faced by people with a disability in pursuing their day-to-day lives. For many people with disabilities the opportunity to work is denied to them and they are trapped in unemployment, poverty or both.

We welcomed moves in Budget 2005 to increase supports intended to help people with disabilities access employment. Similarly, we welcome the Workway campaign, which is aimed at changing awareness and changing attitudes and practices surrounding the employment of people with disabilities. However, new policies, including that outlined above, need to be adopted if the campaign is to be a success.

^{Migrant workers}

The current work-permit system faced by migrant workers in Ireland is of concern, particularly for those migrants working in low-paid service and manufacturing jobs. We have already highlighted that many of these are living on incomes below the poverty line.

CORI Justice welcomed the commitments contained in Towards 2016 aimed at addressing the problems faced by migrant workers especially the commitment that:

“the Government has agreed that the Employment Permits Bill will be enacted at the earliest possible date and that economic migration policy will ensure the following:

• That all workers will be allowed to apply for and reapply for their own permit;
• That there will be appropriate consultation with the social partners in determining included and excluded categories of staff/skills for eligibility for work permits;
• That there are adequate safeguards to protect workers’ rights in relation to the application for employment permits by:
  • employers inside and outside of the State;
  • employment agencies; and
  • in respect of intra-corporate transfers;
• that the employment of non-EEA students is subject to an application for
• employment permits;
• that employment permit applications are not approved for wages below the REA/ERO rate or the National Minimum Wage, whichever is appropriate;
• that employment permit holders may transfer to another employment in cases of unfair treatment; and
• that spouses of employment permit holders who are granted residence in Ireland may be granted an employment permit.” (2006: 104)

Overall, CORI Justice believes that government must implement a rights-based immigration policy which addresses the unnecessary and undesirable restrictions this system imposes on migrant workers and their families. Furthermore, we believe that the UN Convention on the Protection of Rights of All Migrant Workers and their Families should be ratified by the government, setting a precedent for all other European countries to follow.

^{Asylum seekers and work}

CORI Justice remains very disappointed that the government continues to reject the proposal to recognise the right to work of asylum seekers. We along with others advocated that where government fails to meet its own stated objective of processing asylum applications in six months, the right to work should be automatically granted to asylum seekers. Detaining people for an unnecessarily prolonged period in such an excluded state is completely unacceptable. Recognising asylum seekers right to work would alleviate poverty and social exclusion among one of Ireland’s most vulnerable groups.

^{Older workers}

As the Irish economy continues to grow, demand for workers will continue to occur. It is expected that by 2011, almost 1.2 million workers in Ireland will be aged between 45 and 69. Currently the CSO report that there are 694,000 workers over the age of 45 in the labour force (2007:15). As a consequence a report by the National Economic and Social Forum (NESF) entitled Labour Market Issues for Older Workers (2003) highlighted the need to facilitate older people in accessing and retaining employment. Its recommendations include:

• More actively explore avenues to promote the benefits of in-work training and retraining for older workers.
• Enhance the provision of supports to older workers, particularly in relation to flexible working, reduced working hours and retraining.
• Put in place a strategy as a matter of priority to implement the recommendations of the Task Force on Lifelong Learning.
• Broaden the remit of the National Training Advisory Committee (NTAC) to include the design and development of a work-based training package that takes account of the specific needs of older workers.
• Examine how best to undertake a regular company-level survey of the training needs of older workers.
• Give greater consideration to the specific educational needs of older workers, including opportunities for progression and the recognition of prior experiential learning. This should apply to programmes like the Vocational Training Opportunities Scheme (VTOS), which provide education opportunities for the unemployed.
• Develop a series of guidelines for employers in relation to older workers and IT and build on the success of the Fast Track to IT (FIT) scheme.
• Extend the Employment Action Plan re-engagement process to those aged over 55 and to those not on the Live Register but currently out of work, such as older women returning to the labour force. (NESF, 2003: 14-16).

CORI Justice welcomed these recommendations. It is important that they are implemented and that in the years to come Ireland’s older people are given every chance to participate in and contribute to society.

^{The need to recognise all work}

A major question raised by the current labour-market situation concerns assumptions underpinning culture and policy making in this area. One such assumption concerns the priority given to paid employment over other forms of work. Most people recognise that a person can work very hard even though they do not have a conventional job. Much of the work carried out in the community and in the voluntary sector fits under this heading. So too does much of the work done in the home. CORI Justice’s support for the introduction of a basic income system comes, in part, from a belief that all work should be recognised and supported.

The need to recognise voluntary work has been acknowledged in the Government White Paper, Supporting Voluntary Activity (Department of Social, Community and Family Affairs, 2000) and by Taoiseach Mr Bertie Ahern TD, who has stated that “voluntary activity forms the very core of all vibrant and inclusive societies”. The report was prepared to mark the UN International Year of the Volunteer 2001 by Government and representatives of numerous voluntary organisations in Ireland including CORI Justice. The report made a series of recommendations to assist in the future development and recognition of voluntary activity throughout Ireland. The national social partnership agreement Towards 2016 also contains commitments in this area. In that agreement the Government undertakes to:

. . . continue to develop policies on volunteering arising from the package of measures initiated in February 2005. A key principle underlying the Government’s approach is that volunteering finds meaning and expression at a local level and that supports and funding should seek, as far as possible, to recognise this reality. The Government remains committed to further developing policy to support volunteering, drawing on the experience in delivering these measures and informed by the recommendations of the Task Force on active Citizenship.

An insight into this issue was provided by a report presented to the Joint Oireachtas Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs. It established that the cost to the state of replacing the 475,000 volunteers working for charitable organisations would be a minimum of €205 million and could cost up to €485 million per year.

CORI Justice believes that government should more formally recognise and acknowledge all forms of work. We believe that everybody has a right to work, i.e. to contribute to his or her own development and that of the community and the wider society. However, we believe that policy making in this area should not be exclusively focused on job creation. Policy should recognise that work and a job are not always the same thing.

^{The Work of Carers}

The work of Ireland’s carers receives minimal recognition in spite of the essential role their work plays in society. According to the Carers Association people caring full-time for the elderly and people with disabilities are saving the state approximately €2 billion a year in costs which it would otherwise have to bear. The Caring for Carers organisation (2003) have stated that 78 per cent of the nations carers were caring for frail older people and that almost half of the nations full-time carers were themselves aged over 60. Furthermore, they reported that 21 per cent of carers had more than one dependent.

Recent results from the 2006 Census give similar indications. It found that 4.8 per cent of the population aged over 15 provided some care for sick or disabled family members or friends on an unpaid basis. This figure equates to almost 161,000 people. The dominant caring role played by women was highlighted by the fact that 100,214 (62.25 per cent) of these care providers were female. When assessed by length of time, the Census found that almost 41,000 people provide unpaid help to ill or disabled family members and friends for 43 hours a week or more, a working week considerably in excess of the standard working week for paid workers (CSO, 2007: 119-121).

CORI Justice welcomes the ongoing examination of this area by the Oireachtas Joint Committee on Social and Family Affairs. It also welcomes the commitment in Towards 2016 to develop a National Carers Strategy. The deadline for this strategy (end-2007) has passed. We strongly urge government to finalise and publish this strategy in the months immediately ahead. It is crucial that policy reforms be introduced to reduce the financial and emotional pressures on carers. In particular these should focus on addressing the poverty experienced by many carers and their families alongside increasing the provision of respite care for carers and for those for whom they care. In that context, the twenty-four hour responsibilities of carers contrast with the recent improvements in employment legislation setting limits on working-hours of people in paid employment.

^{Work and Towards 2016}

The National Agreement Towards 2016 identified a number of actions to be prioritised in the area of work and employment. CORI Justice will publish a review of the agreement’s progress during summer 2008 and in that document we will address progress on these actions:

On upskilling

• Increasing participation in Lifelong Learning in particular among the workforce categorised as low-skilled/low paid.
• Focusing on helping adults from disadvantaged communities including those in rural areas, to acquire basic literacy, numeracy and IT skills and tackling barriers/disincentives to lifelong learning.
• Providing additional supports for students from disadvantaged backgrounds, students with disabilities and mature students to enhance access to further and higher education.
• Formulating a National Skills Strategy.

On access to employment

• Applying the National Employment Action Plan referral process earlier than the current six months.
• Extending the National Employment Action Plan referral process to other groups such as lone parents and those with disabilities.

On voluntary activity

• Continue to develop policies on volunteering arising from the package of measures initiated in February 2005 and from the recommendations of the Task Force on Active Citizenship.

On people with disabilities

• Developing a strategic integrated approach to rehabilitation services within the context of the Multi-Annual Investment Programme with a view to supporting people back into employment, as appropriate, through early intervention and enhanced service provision.
• Develop a comprehensive employment strategy for People with Disabilities.

On migrants

• A new framework to address the broader issue of integration policy.
• Enact the Employment Permits Bill (see above)

^{The importance of balance}

The new situation created by the huge growth in available jobs raises major questions concerning the focus of policy in this area. Should Ireland continue to expend resources to increase further the number of jobs available? Given the problems being experienced in trying to increase the labour supply (by recruiting women, older people and people from abroad), should more emphasis be placed on improving the quality of jobs available, and the education, training and life-long learning capacity of people in the labour force? The latter approach seems more sensible.

In conclusion, we outline key policy proposals with regard to work.

^{Policy Proposals on Work}

• Develop employment-friendly income-tax policies which ensure that no unemployment traps exist. Policies should ease the transition from unemployment to employment.
• Place an ongoing emphasis on preparing and enabling unemployed people to access market-place jobs. Such an emphasis would involve
  • increased numbers of places providing quality education and training, re-training and up-skilling
  • expanded opportunities for unemployed people to gain work-place experience
  • constant review and updating of programmes such as Community Employment to ensure they are effective.
• Maintain a sufficient number of active labour-market programme (ALMP) places available to those who are long-term unemployed.
• The Community Support Programme located in the Department of Community, Rural and Gaeltacht Affairs should be expanded and resourced beyond what is committed in the national social partnership agreement Towards 2016.
• A new programme must be put in place targeting those who are very long-term unemployed (i.e. 5+ years) to replace the Job Initiative (JI) programme which has been terminated.
• Seek at all times to ensure that new jobs have reasonable pay rates and adequately resource the inspectorate.
• As part of the process of addressing the working poor issue, reform the taxation system to make tax credits refundable.
• Adopt policies to address the worrying trend of youth unemployment. In particular, these should include education initiatives and retraining schemes.
• Adopt policies to address the obstacles facing women when they return to the labour force. These should focus on care initiatives, employment flexibility and the provision of information and training.
• Reduce the impediments faced by people with a disability in achieving employment. In particular address the current situation where many face losing their benefits when they take up employment.
• Implement a rights-based immigration policy.
• Ratify the UN Convention on the Protection of Rights of All Migrant Workers and their Families.
• Recognise the right to work of all asylum seekers whose application for asylum is at least six months old (and who are not entitled to take up employment).
• Recognise work that is not paid employment. Everybody has a right to work, i.e. to contribute to his or her own development and that of the community and the wider society. This, however, should not be confined to job creation. Work and a job are not the same thing.
• Give greater recognition to the work carried out by Carers in Ireland and introduce policy reforms to reduce the financial and emotional pressures on carers. In particular these should focus on addressing the poverty experienced by many carers and their families alongside increasing the provision of respite care for carers and for those for whom they care.
• Finalise and publish the National Carers Strategy without further delay.
• Request the CSO to conduct an annual survey to discover the value of all unpaid work in the country (including community and voluntary work and work in the home). Publish the results of this survey as soon as they become available.

Notes:

50 The issue of suicide is also assessed in section 3.6.
51 Census 2006 found comparable results, reporting that 9.3% of the population had a disability – 393,785 people (CSO, 2007:13).

Links

Creating a More Inclusive Labour Market NESF Report 33, published January 2006

FAS/ESRI Employment & Vacancies Survey 3rd Quarter 2004 - 03/12/2004

January 28th, 2004: CORI Justice Commission publishes new briefing document on Work, Unemployment and Job CreationDownload Pdf

2003 July: Employment Action Plan Justice Commission makes submission to the Department of Enterprise, Trade and Employment on the forthcoming Employment Action Plan Download Pdf