Loss of benefits a threat to workforce

FEAR of losing benefits such as the medical card and rent supplements are turning people off entering the workforce.

According to the latest FÁS study of the labour market, more people would take a job if they were still able to retain some secondary benefits.

FÁS director-general Roddy Molloy said, at €317 a week, the threshold for retaining these benefits is too low.

He said the level has been frozen for nearly 10 years and has not taken into account the increase in the cost of living.

“[You] have to make it worthwhile for people to want to work. Fear of losing a medical card is [a] reason why people will not up employment,” Mr Molloy said yesterday. The agency also proposed a number of other measures designed to assist the long-term unemployed in re-entering the workforce.

It said the Government should give a subsidy of €200 per week to an employer if they hire someone who has been out of the workforce for more than two years.

It also recommended a series of initiatives for paid learning lease to increase the skills of “low qualified employees.”

The agency added that it is increasing its spending on employee training by up to €30 million a year over the next three years.

The report says that Ireland continues to enjoy one of the lowest unemployment rates in Europe at 4.4% compared with an EU average of 9.8%.

Furthermore, it forecast that next year will see a further 30,000 people join the workforce.

Mr Molloy said the Irish employment market is “the envy” of Europe, but the country cannot afford to be complacent and that significant competitive issues and social inequalities exist.

Looking ahead for the coming years, FÁS said employment growth will be heavily dependent on immigrant workers.

So far, immigrant workers have tended to be employed in the lower paid services sector but, if the economy is to grow, we need to attract skills workers from inside and outside the EU.

The report says a US-style “Green Card” allowing people to come and work here would be the best option.

It said immigrant workers from within the EU should be the primary source of skilled employees, such as engineers.

The call for a Green Card system was backed by the Labour Party. Its justice spokesman Joe Costello said: “The Labour Party proposes a special immigration initiative based on our labour market requirements and taking account of countries that have communities here and with whom we are building social and cultural links.”