Is there a level of unemployment in this State which the Government considers to be acceptable? Unemployment, as measured by the Live Register, increased by more than 8,500 in July, a period when a smaller increase in the jobless numbers is the norm. Movement over a single month must always be interpreted with care. However, it seems clear that, despite the recovery in the economy, unemployment remains stubbornly around the 170,000 mark. It has been close to or over this figure for nearly two years.
That the economy is performing well cannot be disputed. Tax revenues are firm and consumer confidence is strong. Estimates for growth this year - as measured by Gross National Product - vary but the lowest is 3.5 per cent and that compares very favourably with an expected eurozone average of not much more than 2 per cent. The Central Bank noted in its latest report that the jobs market is "tightening".
Yet the Live Register statistics would suggest that it is not tightening that quickly and that few low-skilled jobs are coming on stream. Anecdotal evidence suggests that notices are appearing on the doors of businesses (mainly in hotels) saying there are no positions available. It is a very different climate to that of four years ago when there were more jobs on offer than people available to fill them. In addition, the figures point to a worsening of the regional imbalance in unemployment. Last month, the Live Register climbed by only 0.1 per cent in Dublin whereas it rose by 4.4 per cent in the midlands. A greater effort on regional development is required.
State grants and low rates of income and corporate tax continue to succeed in attracting foreign direct investment. Companies such as eBay, Yahoo and Google have recently announced their intention to set up facilities which will offer well-paid employment to skilled individuals. The IDA has made it clear that it will concentrate its energies on creating high-skilled employment. The State is marketed as "Ireland - knowledge is our nature". But there is much less effort being put into creating employment possibilities for the low-skilled.
Although Ireland's unemployment rate compares very favourably with our European partners, the State agencies and the Ministers responsible for them must beware of complacency. No doubt there are individuals signing on for the dole who are hostile to any notion of regular (and registered) employment. But equally there are those who would respond to encouragement and incentives to return to employment.
The recently published report of the Enterprise Strategy Group emphasised the necessity of new initiatives which would promote retraining, in-work training and lifelong learning. There will continue to be job losses in manufacturing industries which are in competition with low-wage economies but strenuous efforts must be made to ensure that those affected have the opportunity to return quickly to the workforce.