'More Ambitious Reduction In Unemployment' Sought By Varadkar And LRC

Ireland's Minister for Social Protection, Leo Varadkar, has agreed to work in conjunction with the Labour Market Council to seek a more ambitious reduction in unemployment.

The Minister has held a meeting with the Council to discuss its response to the Pathways to Work Strategy 2016-2020, which aims to tackle unemployment and ensure that as many new jobs as possible go to people on the Live Register.

He will now seek approval for the more ambitious targets from the Cabinet Sub-Committee on the Economy, Trade & Jobs.

The proposed new targets include:

• Reducing the unemployment rate to between 5% and 6% by 2020

• Increasing the employment rate (i.e. the percentage of adults in the workforce) target to more than 73% by 2020 (existing target 69%-71%)

• Bringing youth unemployment to 12% or less by 2020 in the context of an overall unemployment rate of 6% or less;

• Decreasing long-term unemployment to 2.5% (a new target);

"The new Government has already reached its goal to reduce unemployment to below 8% this year, with the rate falling to 7.8% in May. The original target was to breach 8% by the end of 2016," Minister Varadkar said.

"Having met with the Labour Market Council today I see every reason to set more ambitious targets in many other areas. I will now seek approval from the Cabinet Sub-Committee on the Economy, Trade & Jobs to formally endorse the new, more ambitious targets.

"The proposed new targets discussed with the Labour Council aim to bring unemployment to below 6% by 2020, reducing it to between 5% and 6%, to increase the target for employment to 73%, and decrease long-term unemployment to at least 2.5%, with the aim of reducing it further if possible.

"I have also asked the Labour Market Council to work with my Department on two initiatives. The first is to develop a replacement for JobBridge, and the second is to develop the Pathways to Work for Jobless Households action plan as committed to in the Programme for Government. Although the level of household joblessness is falling as the economy gets back to work and is trending in the right direction we can't afford to be complacent. People from families where no adult is working face higher barriers in accessing employment. As a result, joblessness can be inter-generational. I want to work with the Labour Market Council to develop a plan to break this cycle and improve outcomes for families and hope to bring this plan to Government by the end of the year."

The Department is already pursuing a number of other recommendations from the Labour Market Council, including:

• Developing the capacity and skills of case officers in 'back to work' counselling, not just for unemployed jobseekers but for other currently inactive working age adults with the capacity and desire to work;

• Ensuring active labour market programmes are stepping stones to decent sustainable jobs, while also recognising that certain schemes have multiple purposes;

• Implementing protocols between State agencies to ensure consistent, integrated and high quality services, to both jobseekers and to employers;

• Progressing the timely evaluations of programmes and processes, including Intreo, JobBridge and JobPath, to inform policy reviews;

• Continuing to provide in-work supports and working to developing in-work guidance/counselling as part of JobPath;

• Holding a national conference to share best practice by the end of 2016.

The Minister concluded: "I want to thank the Labour Market Council for preparing this Response to the Pathways to Work Strategy 2016-2020 and for their ongoing support and advice in respect of labour market and employment policy. I look forward to working closely with the Council in future."

(MH/LM)