Leo Varadkar: More ambitious targets on jobs

The country’s unemployment rate is predicted to be as low as 6.3% over the course of 2017 — after hitting a high of 15.1% at the peak of the financial crisis.

The latest unemployment rate — 6.6% for February — has prompted Social Protection Minister Leo Varadkar to consider “more ambitious unemployment targets”.

“This [the latest rate] is really encouraging, but I think it also represents an opportunity for the Government to be even more ambitious in its plans,” he said.

“That’s why I’m considering more ambitious targets for driving down unemployment.

“The current Government target is to achieve an unemployment rate of 6% by the end of 2020, and a long-term unemployment rate of 2.5%.

"I am now considering revising these downward, or bringing the target date forward from 2020, and have asked my officials to consider options.”

The 6.6% figure for February is down from 8.4% a year earlier. That means the number of people out of work has fallen by 36,200 to 145,100 since last February.

However, on a less positive note, the unemployment rate for those aged 15-24 years remains at 14.5%, albeit down from 17.2% in February 2016.

Alan McQuaid, economist with Merrion, said youth unemployment is too high but added that the overall fall last year, from 17.6% at the beginning of 2016 to 15.9%, at the end “was encouraging and augurs well for 2017 despite Brexit worries”.

“Although emigration has been a factor to some degree in keeping unemployment down since the financial crisis, the labour market has improved dramatically over the past three years or so, reflecting the strengthening of the economic recovery,” said Mr McQuaid.

“Indeed, the most recent migration estimates showed net inward migration of 3,100 in the year to April 2016 as against net outward migration of 11,600 in 2015, and the first positive figure since 2009.”

Mr McQuaid predicted a net jobs rise of 45,000 this year.

“As regards unemployment, and based on the latest CSO figures, we are forecasting an average jobless rate in 2017 of 6.3% as against 7.9% in 2016 and 9.4% in 2015,” he said.

Meanwhile, the Economic and Social Research Institute’s annual monitoring report on integration for 2016 found that, among non-Irish nationals living here, Africans had very low employment rates at around 40%.

Furthermore, it found that in 2014, 21% of non-Irish nationals here were living below the income poverty line, compared to 16% of Irish nationals.

Overall, the report found the total number of naturalisation certificates issued to non-Irish nationals in 2015 was 13,500, 46% lower than the 2012 peak, when 25,100 certificates were issued.

It says that between 2005, when records began, and the end of 2015, a total of over 121,100 non-Irish nationals acquired Irish citizenship through naturalisation.

Report author Frances McGinnity said the immigrant population here comprises a large group with Irish citizenship who share the same rights and responsibilities as Irish citizens by birth or descent.

“Citizenship does not necessarily imply a sense of belonging, but the very significant increase in the numbers gaining citizenship indicates progress towards the fuller integration of immigrants in Ireland,” said Dr McGinnity.

“Notwithstanding the considerable progress made, challenges remain for Ireland in integrating its large numbers of new immigrants.”