Ibec publishes Guide to Labour Market supports following event on Labour Market Challenges and Solutions

Pre-Covid there were over 2.3 million people in employment, the highest level in the history of the State, and unemployment was at 4.7%. With the onset of the pandemic, we saw a COVID-19 adjusted unemployment rate of 28.2%. The most severely impacted sectors were Tourism & Hospitality, Food Services; Retail and Construction and those worst hit were young, low-skilled and previously in part-time employment.

The Government acted quickly and introduced a series of measures which saw over 1.1 million people in receipt of State supports (including the live register). As restrictions have eased and society has reopened, different challenges are emerging, with the labour market seeing a significant level of transition activity. The numbers on the Pandemic Unemployment Payment (PUP) continue to fall weekly and are down to just under 110,000 people, the lowest since the payment was introduced, compared to just under 500,000 on the PUP at its February peak.

Widespread disruption in the labour market has resulted in the unusual position of both relatively high numbers seeking work and simultaneous skills and labour shortages in certain sectors. As the economy responds, many sectors are reporting difficulty filling vacancies, while pre-existing pinch points within ICT and Finance are persisting. This is not solely an Irish issue but rather a global one with the same challenges being felt across Europe and the USA.

Overview of labour market challenges

There are many reasons for the current skills and labour shortages. They include:

• The disruption of intra-EU mobility and migration flows - throughout the pandemic the procedures to apply for and obtain work permits has been complicated. It remains unclear when cross-border mobility will reach pre-pandemic levels. With the inward migration of workers declining even before COVID, there will be an increasing need to train for in-demand skills domestically.
• Workers switching sectors and roles during the pandemic - some workers opted to change jobs during the pandemic so that they could continue to earn a living. For example, reports from the hospitality industry show that uncertainty about business closures and reopening has led some workers to permanently change jobs with some commentators suggesting that as much as 30% of the workforce in the hospitality sector has moved to another sector. 
• Structural issues around housing, rents and childcare costs as well as the reluctance of some to return to work while they are dealing with uncertainties in the provision of school or childcare as cases continue to occur.

The pandemic has exposed the vulnerabilities of European labour markets and the need for sustained investments in a suitable policy mix to address labour shortages. While investment in skills is vital for inclusive and sustainable growth in the context of the green and digital transitions, policies should also address the broader issues of job quality, migration and the enhanced integration of groups currently outside the labour market such as people with disabilities in significant numbers, refugees etc.

Solutions

Ibec and the Department of Social Protection hosted an event for employers to discuss the labour market, the challenges different sectors were facing, and the type of employer supports and labour market activation solutions available[1].

Addressing the event Minister Damien English talked about the need for collaboration across the Departments of Social Protection; Enterprise, Trade and Employment; Education; and Further and Higher Education, the business community and Ibec to solve the skills shortage and access to talent difficulties being faced in Ireland. He commented on the commitments of the budget to existing programmes and also to develop new programmes to ensure labour market activation, upskilling and reskilling and to support employers. He emphasised the Government’s commitment to a jobs-led recovery, through targeted supports to businesses and workers most severely impacted and through helping people get back into work. This would be achieved through training, through education and upskilling but also through investment in job rich infrastructure projects to support long-term capacity. These combined policy initiatives aim to encourage employment and economic growth, but also will complement measures to reduce inequality, promote sustainability, inclusivity and good living standards.

Siobhan Lawlor and Cassandra Hinchy from the Department of Social Protection outlined a range of employers supports, activation programmes and events to address the challenges. They outlined the support INTREO – the public employment service can offer in terms of guidance and resources for employers and jobseekers including job-matching services. In particular they focused on:

• The www.JobsIreland.ie recruitment platform which is free to employers to advertise vacancies, and which offers a job-matching function to enable jobseekers with the relevant skills to be directed to that employer.
• The Work Placement Experience Programme (WPEP) a fully funded placement for training and work experience which would support people to re-enter the labour market with skills and experience. There are 10,000 placements available and each placement is for 6 months, working 30 hours a week for 26 weeks. The individual will also complete training and upskilling with the employer of 60 hours, 20 of which are to be accredited, and a training support grant of €1000 is available to fund training. There is also a QQI accredited WPEP training module available through the ETB’s. The payroll savings per participant are €7956.
• The JobsPlus financial incentive for employers who hire an employee from the live register for at least 30 hours per week. This can also apply to individuals the employer has hosted on the WPEP when they complete the programme. The rates paid are linked to age and period unemployed and range between €7500 and €10,000.
• The EURES portal that enables recruitment from the EU by advertising vacancies across the EU/EEA with the support of a transnational public employments service. There are grants available to jobseekers to attend interviews, relocate and access language supports. This a very useful resource especially for “difficult to fill” vacancies.
• The Wage Subsidy Scheme for people with a disability (WSS) is available to employers who hire a person with a disability for a minimum of 21 hours per week. There are also a range of funds and grants to support any reasonable accommodations or supports required.

Finally, a robust discussion ensued with panellists:

• Ade Stack, Managing Director and Superintendent Pharmacist, Stacks Pharmacy Group
• Andrew Brownlee, CEO, SOLAS
• Angela Cahill FET Quality Assurance Coordinator, Louth Meath ETB
• Anthony Murphy, Director, Murphy Furniture
• Dr Eithne Ní Bhrádaigh, HR Director, VistaMed Ltd
• Elizabeth Bowen, Director of Prepared Consumer Foods, Food Drink Ireland
• Lorna Martyn, Head of Technology, Fidelity Investments
• Siobhan Lawlor, Head of Employer Relations Division, Department of Social Protection

Topics ranged from the programmes offered by SOLAS to upskill and reskill those impacted by the pandemic and others in employment. Delegates heard from employers regarding both the labour market challenges being faced, but also their experience in using various activation programmes including JobsPlus and the WSS scheme.

Accompanying the event was a comprehensive guide (linked below) to sources of skills, talent and supports which highlights not only the Department of Social Protection employer supports and labour market activation initiatives but also captures other sources of talent that employers should consider connecting with including:

• the EEA recruitment initiatives that are ongoing;
• how to tap into and recruit people with disabilities;
• people in direct provision and refugees; and so on.

To listen back to the event click here https://www.ibec.ie/playback/2021/10/13/labour-market-challenges-and-solutions.

Kara McGann

Head of Social Policy

[1] Structural issues that impact on the labour market and talent were outside the scope of this event including work permits, housing and childcare systems and may be covered by later events.