A potential showdown between Government and business groups is looming after the Coalition said companies participating in a new scheme replacing JobBridge must make larger, yet-to- be-agreed contributions to interns’ pay.

Social Protection Minister Leo Varadkar admits the country “could and should” be making more of an effort to find work for those rendered jobless during the economic crash.

Further research is being carried out into why participants in a back-to-education scheme that has cost €1.5bn over 17 years are less likely to move into jobs than other unemployed people.