DETI announces enhanced monitoring of labour market

As part of its three-year TSN Action Plan (2000-2003), the Department of Enterprise, Trade & Investment (DETI) plans to increase monitoring of the impact of government assistance on the labour market and, in particular, on the unemployed.

In line with this commitment, DETI’s economic development agencies have introduced new monitoring arrangements for companies in receipt of financial assistance from 1 April 2000.

A spokesperson said: “The aim of this exercise is to improve our understanding of how government assistance to companies impacts on individuals, and to allow DETI to assess how successful its activity has been in contributing to the key New TSN objective of reducing unemployment.”

Employment build-up in assisted projects can take some time but to date, some 50 companies in New TSN areas have provided information covering almost 1,500 new recruits taken on as a result of assistance offered during the period April 2000 and September 2001.

Of these 1500 new recruits: 53% were Roman Catholic; 38% were Protestant; and 9% were of another religion; 58% were male, 42% were female; prior to obtaining these jobs, 65% had been employed elsewhere; 20% had been unemployed; and 12% had been in full-time education.

Although details on disability were also requested, insufficient data was returned for analysis.

In addition to monitoring the direct impact of government assistance on the labour market, DETI sought to estimate the indirect impact of that assistance. The Department found that, for every 100 new jobs created in assisted projects, between 16 and 27 previously unemployed people found work as an indirect result of that assistance.

In total, the information available to date indicates that for every 100 new jobs created through financial assistance from DETI and its economic development agencies between April 2000 and September 2001, between 36 and 47 unemployed people, either directly or indirectly, gained a job.

The spokesperson added: “DETI fully recognises that this initial information represents only a starting point in its efforts to gain further insight into the impact of government assistance to companies on the labour market. At this early stage, the data provided consists of a relatively small number of projects and is subject to skewing by a few large projects but as monitoring continues, it is expected that a more representative and revealing picture will be built up over time.

“The Department and its economic development agencies remain firmly committed, not only to implementing the monitoring arrangements presently in place, but also to continuing to develop and enhance its systems.”

Further statements on the outcome of these monitoring arrangements will be made on an annual basis.

(SP)