Report: Low-skilled to be worst hit in slowdown

THE predicted slowdown in employment growth will have the most serious implications for the low-skilled, a report has revealed.

An advisory body to the Government on major economic and social policy issues said while labour market vulnerability remains, it was gratifying to note lifelong learning for the low-skilled will at last be prioritised under the paytalks.

The National Economic Social Forum, which is the largest and most representative of the social partnership institutions, said the move was essential to enable them to compete and find better jobs in the increasingly knowledge-based society of the future.

In its fifth periodic report, the forum evaluated and monitored the implementation of equality and social inclusion policies by departments between 2003 and 2006.

Labour market issues for older workers; equality policies for lesbian, gay and bisexual people; policy implications of social capital; early childhood care andeducation; care for older people and creating a more inclusive labour market were the key areas studied.

The forum said progress had been made in each of these areas, but highlighted a additional areas where further action is required.

The forum found that while steady progress was being made by Government departments regarding older workers, follow-up action was needed as the dependency ratio more than doubles over the next 20 years.

It supported an initiative to review rules on retirement and avail more of the potential of older people in the workforce.

“The benefits of this would include reducing upward pressure on pensions and health expenditure in the future,” it stated.

The forum said it would also welcome reforms of the pension system to give people more choice to retire more gradually through, for example, building up additional pension years beyond 65, easing the work restrictions for people to draw a state pension and a review of the tax treatment of pension income and of earned income.

Last week it emerged significant numbers of older people who do not want to be forced to retire have contacted the Equality Authority. Its annual report revealed that, for the first time, age was the most common ground for cases it took under the Employment Equality Acts.

Taoiseach Brian Cowen said the forum brings together a very wide range of experiences and perspectives.

“The forum fulfils an important advisory role through its programme of work and by providing an opportunity for individuals and groups to engage on policy developments and implementation issues,” he said.

“These assessments will be of considerable value to Government in determining priorities for the future across the broad social policy agenda.”

Elsewhere, the NESF said it was disappointed the health department had not yet reacted to recommendations that public spending on elder care should be increased over the next five years to reach at least the OECD average spend of 1% of GDP.

“Multi-annual resource allocations are essential for effective policy development and implementation, otherwise the present year-to-year ad hoc system will continue,” it said.

“The undertaking in Towards 2016 to providing substantial additional resources for elder care, with three-quarters going for community supports, is to be welcomed.”

The forum highlighted its disappointment that its recommendation of providing a state-funded, high-quality care for all children in the year before school has not been accepted.