Ireland needs an integrated Department of Labour to solve jobs crisis – Senator MacSharry

Senator Marc MacSharry has called for the establishment of a Department of Labour to foster Ireland’s economic recovery and eliminate the ‘variety of anomalies’ which currently characterise labour market policy.

Ireland is currently experiencing a jobs crisis with the overall unemployment rate standing at 12.8% and the youth unemployment rate (under 25’s) at 28.4%. Only a proactive response aimed at refining active labour market policy will reduce the number of people on the live register, he said.

‘We need a labour market policy that meets the future needs of the economy. This will involve a re-direction of labour, re-training and training in high skill areas to create the basis of the Smart Economy. We also need a change in the overall approach to unemployment so that permanent unemployment does not become the unavoidable fate of many’ said MacSharry.

However, a concerted labour market policy is encumbered by the divergent responsibilities of the Department of Enterprise Trade and Employment that has responsibility for labour market policy and the Dept of Social and Family Affairs responsibility for unemployment. The answer is an integrated Department of Labour. Unemployment is seen by the Department of Social and Family Affairs as a welfare problem not a labour market problem.

Division of responsibility for labour market policy between the two departments has led to a variety of anomalies in policy. There is an absence of focus on low-skill workers. There is a possible imbalance between the minimum wage and jobseekers allowance. There is, also co-ordination difficulties between personnel with responsibility for Job Seekers Scheme and FAS, including computer incompatibility.

‘We could address the labour market policy failures by establishing a Deptartment of Labour which, in addition to discharging the labour market responsibilities of the Dept. of ETE, would also take over responsibilities of the Job Seekers Scheme from the Dept. of SFA’ continued MacSharry.

Similar to the Department of Work and Pensions in the U.K, this should be the first step to ensure a concerted, focused and coordinated strategy to tackle the current labour market crisis, he concluded.