Unemployment crisis - The greatest challenge facing us all

THE greatest challenge facing this society and our Government is the soaring unemployment rate — 14.5% — and the fact that nearly half of the 448,600 people out of work have been unemployed for more than a year.

Recognising this Taoiseach Enda Kenny, in a pre-Christmas interview published today, reiterated the Government’s commitment to do everything possible to try to create jobs.

Already under fire over unrealised commitments made last year to create 100,000 jobs, Mr Kenny said he hoped that “by the end of this Government’s period in office that anybody on long-term unemployment will be off long-term unemployment ... either ... in the world of work or ... up-skilling or changes of direction in terms of courses or whatever”.

This, as the estimated 70,000 people who emigrated last year would confirm, is far more easily said than done. Even the most determined and well-resourced government would find it more than challenging to create the conditions where nearly 500,000 people might find jobs or be placed on meaningful training courses.

That the world economy is slowing down — the IMF warned last week about revising 4% growth predictions downwards — and that the eurozone remains in crisis makes things even more difficult. Yet, that must be the over-riding priority for Government — and all of us — in 2012.

The hardship, economic and emotional, inflicted on individuals and families by unemployment and the damage done to society is so great that everything else pales by comparison. That stress and disappointment must be behind a great proportion of the 1,384 calls made to childline on Christmas Day. Can there be a starker indication of how difficult things have become than the chilling fact that, on what should be one of the happiest days of the year for children, almost every minute a child contacted the service looking for support and comfort? This call rate represents a 38% increase on last year’s figures and must be a cause for great concern.

One of the ways Mr Kenny proposes to address this crisis is by making it easier for small businesses to secure credit. He spoke of a micro-finance agency to service small businesses’ credit needs and of re-engaging with the commercial banks to try to encourage them to more readily lend to businesses.

Without this life-blood it would be almost impossible to make a meaningful reduction in unemployment rates. We have reached the point where Government cannot take no for an answer on this issue and it must be hoped that it, rather than act as a supplicant, is prepared to impose their will on the banks on this matter.

Job creation is by far the primary issue at stake here but it is not the only one. Brian Cowen’s political career, and his party’s primacy, were holed below the waterline by his inability to communicate. Enda Kenny runs a similar risk. He has communicated substantial promises on job creation, but failing to deliver would define his career in the most negative way.