Gap between rich and poor ‘has never been greater’

DESPITE increasing levels of wealth, Ireland is a more unequal society than ever before, the latest report from the National Economic and Social Forum has found.

The report, to be published today, calls for a more coherent approach to tackle unemployment and proposes intensive "personalised action plans" for individual unemployed people.

According to the report, the richest 20% of the working-age population earns 12 times as much as the poorest 20% one of the highest levels of market income inequality among all OECD countries.

With many low-skilled jobs in the economy, the report also found that employment is no guarantee of escaping the poverty trap.

Of all households considered to be living in poverty, 14% were headed by those with a job.

Consequently, the report calls for agreement between the Government, unions and employers for the funding and provision of workplace training and up-skilling to be a policy priority.

It also calls for a €30 million "free fee" system to be put in place by the Government for part-time students wishing to take courses relevant to their occupation.

In addition, another €20m fund to facilitate training for young, low-skilled employees is proposed by the end of 2007.

Even the most basic education and literacy skills are frequently lacking as well as levels of lifelong learning, the report found.

For example, less than 10% of those aged 25 to 64 are involved in 'lifelong learning', compared with 34% in Sweden, 21% in Britain, 19% in Denmark, 18% in Finland and 17% in the Netherlands.

The report warns that without up-skilling, many low-skilled workers will continue to experience low-paid, precarious employment, including periods of recurring unemployment.

The report urges a more equal and inclusive labour market policy in order to encourage the emergence of a more productive and better-skilled workforce.

"This will not only improve the prospects of the individuals affected but help sustain our national social and economic development," the report concludes.

It also calls on the authorities to "agree on a fair immigration system that will both help to meet our future skills needs and ensure that longer-term support measures are put in place now to help migrant workers and their families integrate into the wider community."