Government’s Work Placement Program needs to be Reassessed
14 December 2009
Macra na Feirme National President Michael Gowing said the Minister for Enterprise, Trade and Employment Mary Coughlan needs to reassess the Work Placement Program especially in light of the proposed reduction in Jobseekers Allowance for young people who are new applicants in the budget.
Mr. Gowing said reducing the rate of Job-seekers Allowance and Supplementary Welfare Allowances for persons aged 20 and 21 to €100 per week and for those aged between 22 and 24 to €150, will have a negative impact on our young educated people who are key to our economic recovery.
Mr. Gowing said a financial stimulus is required to get young unemployed people who have recently completed their education back contributing to the economy. The Government needs to reexamine labor market interventions for example the Work Placement Program and the Back to Work Allowance scheme incentives for job seekers and employers.
Firstly, work experience is very important for young people after finishing their education. Currently, under the Work Placement Program which was launched in April 2009 if you are unemployed and in receipt of social welfare payments for three months and subject to approval by the Department of Social and Family Affairs an applicant may be able to retain their payment and entitlements while on placement. However, the Department of Enterprise needs to take a fresh look at the program as only 129 people have availed of it in the last 6 months since it was launched.
Macra believe employers participating in this placement program should also contribute €100 per week towards expenses for the young person under taking the work experience. Young people completing placement will incur cost and a financial stimulus in the form of an allowance should be made towards offsetting these costs and incentivising the young person into a work placement.
Secondly the Government should reinstatement the Back to Work scheme which closed in May 2009 where people returning to the workforce are allowed keep a percentage of their social welfare payment over a three year term. The past age threshold of 25 years of age to qualify should be changed to allow those under 25 to be eligible and the term of unemployment before a person is eligible should be reduced from two years to one year. An important aspect is that employers need to be in a position to avail of PRSI reliefs to incentivize them to employ people in these difficult economic times.
Young people need opportunities and a financial stimulus, otherwise we will return to the days of the ‘brain drain’. Young people are very exposed to the current economic downturn, yet youth are the key ingredient in the development of Ireland’s Smart Economy’ and overall economic recovery.
