The Jobs crisis in Ireland is getting worse.
Unemployment has appeared to be steady over the past 12 months with very little change; thousands of Irish have packed up and left the country and gone abroad to look for work.
However despite all this the welfare bill is expanding.
How can the welfare bill be expanding at a time that unemployment appears to be steady despite still being very high?
Many factors are playing their part, one of the worst factors is the Job bridge scheme and internships, as of Feb this year 5,000 people had taken up internships with similar figures on other government schemes such as FAS, WPP and community projects.
Overall however Ireland is in a bigger crisis.
Every month we appear to be getting job announcements by the government on jobs being created. What they don’t tell you however is that many of these jobs are simply not viable for many existing unemployed people as they are looking for a particular skill set that many of the unemployed don’t have. Of course we could look at retraining but that takes time which isn’t what an employer is looking for. A simple solution for the employer is to recruit that best person for the job which in many cases can be someone from abroad.
Also many of the jobs announced are part time positions, these positions will help relieve the burden on welfare payments but in most cases people can still avail of welfare payments to help top up and subsidise their income if supporting a family.
The biggest issue with a lot of the job announcements by the government is that they are planned announcements for the future. Whilst it may well be the intentions of a company setting up here to create thousands of jobs over the next 3-5 years it may well not be there position the following year. The recent announcements by PayPal highlight this where they with the government announced huge employment in Ireland last year only to discover this year that they plan on reducing the amount of employees they have worldwide.
However despite all this the total number of jobs in Ireland is falling, this is bad news because even if you factor in all those people leaving the country, the population of Ireland is bigger today than it was in 2005.
Each year Ireland is losing more and more jobs which is obviously reducing tax take and pushing up the cost of welfare. We are also increasing the number of part time jobs which isn’t good at all as it further forces people to rely on welfare supports to top up their incomes.
Despite Fine Gael saying that they were going to get Ireland working they have simply allowed things to get worse, a lot worse.
Official Website of Fine GaelFine Gael Party Leader, Enda Kenny T.D. along with members of his Front Bench will today (Wednesday) outline the core elements of the Party’s 5 Point Plan to Get Ireland Working. The Plan is designed to create jobs, reform the health system, fix the budget crisis, make Government smaller and more cost effective and put the burden on politicians first.Fine Gael’s 5 Point Plan to Get Ireland Working - Kenny
“At the heart of the current economic crisis is an unemployment crisis. Over the last three years 300,000 people have lost their jobs – the biggest fall in employment in the OECD and 100,000 mostly young people will emigrate over the next two years.
“Fine Gael has a clear credible jobs plan which will create 20,000 jobs every year over the next four years by focusing on spending cuts rather than job-destroying tax increases. We will invest in our future through our NewERA plan to pump €7 billion in green infrastructure. We will invest in small and medium sized businesses through a new partial loan guarantee scheme which will give them the credit they so desperately need. In addition, we intend to abolish the lower rate of employer PRSI to encourage the creation and retention of jobs.
Employment has also fallen over the years, employment is the total number of job in Ireland.
Total in Employment 2005 - 1,944.6
2006 - 2,034.9
2007 - 2,113.9
2008 - 2,112.8
201 1- 1,821.3
As the table above shows in 2005 Ireland had 1,944.6 people at working, in 2012 we have 1,787.9 working.
Total Labour Force 2005 - 2,040.4
2007 - 2,217.0
2008 - 2,239.6
2009 - 2,203.1
2010 - 2,152.7
2011 - 2,125.9
2012 - 2,096.4
Whilst many young Irish continue to leave looking for work elsewhere the labour force table above shows clearly that today in 2012 we have a larger labour force than we had in 2005 when we had low unemployment.
Total Unemployed 2005- 95.8
2006 - 97.9
2007 - 103.1
2008 - 126.7
2009 - 264.6
2010 - 293.6
2011 - 304.5
2012 - 308.5
In 2005 we had just under 95,000 people claiming unemployment whilst in 2012 we have over 300,000 claiming unemployment.
Population 15 Years & Over 2005 - 3,287.9
2006 - 3,376.1
2007 - 3,462.5
2008 - 3,514.9
2009 - 3,523.8
2010 - 3,512.4
2011 - 3,502.7
2012 - 3,486.2
Despite record numbers of Irish people leaving to look for work our population over the age of 15 is still higher than it was in 2005.
The above figures can be obtained from the CSO website or click the link.
Irish Politics, Current Affairs and Magazine Archive - Politico.ie | Grim gets grimmer
The above table also shows that full time employment is falling, more and more jobs that are being created are part time positions which are causing more people to rely on welfare payments to top up their weekly income.