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The EU and Employment
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Employment in industryThe global economic crisis has brought sharply into focus one of the European Union’s primary objectives – job creation.

Average unemployment rates across the EU are on the increase and stood at 9.7 per cent in September 2011. The figures for Ireland were even higher at over 14 per cent.

Finding new ways to create meaningful, sustainable employment has never been more important and it’s at the heart of the EU’s Employment and Social Affairs policy which aims to improve living standards for all European citizens

Since its foundation, the EU has successfully promoted economic growth, jobs and better working conditions in all its member states. Today, the challenge is to adapt to new economic circumstances, technological change, globalisation and an ageing European population.

Research shows that new and higher levels of skills will be needed for the jobs of tomorrow. Supplying those skills is part of Europe 2020, the European Union's new strategy for jobs and growth.

It fits in well with Ireland’s own strategy, Building a Smart Economy , which aims to create jobs by becoming a knowledge-intensive economy that promotes education and invests to attract multinational firms and support research and development (R&D) around the country.

EU STRATEGY

Being part of the European Union helped Ireland's historic transformation from an economy dependent on agriculture and traditional manufacturing to one increasingly based on hi-tech industry.

Since becoming a member state in 1973, access to EU markets has enabled Ireland to attract substantial foreign investment and new jobs have been created in hi-tech sectors like pharmaceuticals, information technology and R&D.

Searching for employmentThe global economic crisis and the collapse of our own property market has placed fresh emphasis on creating new employment opportunities by increasing our competitiveness in these industries and becoming world leaders in the emerging ‘green economy’.

The "Europe 2020" Strategy aims to bring the employment rate for women and men aged 20-64 up to 75 per cent. It also hopes to promote the greater participation of youth, older people and low skilled workers in the jobs market.

The strategy includes goals to improve the conditions for R&D, reduce greenhouse gas emissions by at least 20 per cent and increase education levels. Europe 2020 is designed to encourage and stimulate theses new sources of growth which will create sustainable jobs to replace those lost during the economic crisis.

Together with our own policies, Europe 2020 should help ensure Ireland is in a strong position to provide the jobs needed for today’s workforce as well as future generations.

FUNDING

European funds have contributed to improving Ireland's transport As a small nation, membership of the European Union is seen as critical to creating jobs in Ireland. We’ve received over €17 billion specifically from EU Structural and Cohesion Funds since becoming a member state, and it’s been used to improve our competitiveness resulting in more employment opportunities for Irish people. (This figure does not take accounnt of the €50 billion from other EU funding, e.g. agriculture.)

Much of the money has come through the European Social Fund (ESF) which has been part of the EU since the Treaty of Rome was signed by founding member states back in 1957.

During the current structural fund cycle that runs from 2007-2013 Ireland will receive €901 million of which €375 million will be in the form of ESF assistance.

To date over €6 billion in ESF funds has been spent in Ireland to co-finance Irish Government spending on training, education and equality programmes designed to equip Irish workers with the skills needed in the modern jobs market.

The economic downturn has led to thousands of Irish workers losing their jobs and the EU has created another source of funding to help some of them. The European Globalisation Adjustment Fund (EGF) is designed to help groups of workers who lose their jobs as a result of changing global trade patterns.

The fund can help redundant workers with job-seeking, re-training and self employment. In September 2010, the European Commission approved funding of €7.4 million to help 850 workers made redundant by SR Technics back into employment. In May workers made redundant by Waterford Crystal and three of its main suppliers got funding of €2.5 million. And in 2009, Dell workers in Limerick got funding of € €14.8 million.

INITIATIVES

The European Commission has taken steps to promote employment and social inclusion as part of its strategy to deal with the economic and financial crisis.

An EU-wide €200 billion recovery plan was launched in November 2008 and advance ESF payments made to member states so they could have easier access of EU funds to reinforce labour market policies and boost job skills.

Retraining exerciseChanges were also made to the EGF so the EU could intervene more quickly to provide cash for training and job placement schemes and the European Progress Microfinance Facility was established to provide credit to small businesses and to people who have lost their jobs and want to set one up.

A ‘new skills for new jobs’ initiative to predict future EU skills requirements and match people to jobs more efficiently was also created and an 'EU Shared Commitment for Employment' put forward key priorities and actions needed to preserve jobs and help those facing difficulties with employment.

The actions include funding to help people stay in sustainable work or move towards new jobs, encouraging entrepreneurship, supporting schemes to maintain viable employment through short-time work and training and a commitment to provide at least five million apprenticeships across the EU for young people facing unemployment.

RESEARCH AND DEVELOPMENT (R&D)

Researcher at NUI GalwayR&D has been identified as a major contributor to modern economic growth and job creation. Developing new technologies will also help address social challenges like poverty, health problems, climate change and environmental damage.

The EU faces major competition in R&D from the United States, Japan and the emerging economies in Asia and so is striving to develop the single European Research Area that encourages knowledge transfer through networks of top-class European researchers.

EU funding has been made available to fund R&D in Ireland including €8 million to the Tyndall National Institute in University College Cork in April 2010. The money created 20 new research jobs and will fund 12 cutting edge projects.

Enterprise Ireland is currently winning EU grants valued at more than €1 million a week for Irish research activities. The funding provides opportunities to Irish companies, research bodies and higher education institutes to participate in high-quality research in collaboration with their European counterparts.

Much of the funding for research comes from the EU Seventh Framework Programme, or FP7 which will pump an estimated €50 billion into research across Europe until 2013.

The European Commissioner for Research, Innovation and Science is Ireland’s Máire Geoghegan-Quinn who will play a key role in developing the EU’s new Research and Innovation Strategy for Europe 2020.

GREEN ECONOMY

RapeseedIreland’s development of a ‘ green economy’ can make a significant contribution to creating new types of employment. The worldwide market for environmental goods and services is huge due to the ongoing challenge of global warming and Ireland is well placed to capture a significant share of this growing sector.

Some reports suggest that there is potential to create over 80,000 ‘green’ jobs over the coming years.The Irish Government sees the green enterprise sector as central to the development of the smart economy and has designated it as one of Ireland’s target sectors for investment and job creation.

It’s a view shared by the European Commission which has put the green economy at the heart of EU policy. A total of €105 billion is being invested in Europe’s quest to become global leader in green technologies which will provide a solid platform for job creation.

Over half the money will help Member States comply with EU environmental legislation to help fight climate change and improve water and waste management. Funds will also be used to promote eco-innovation and create new ‘green-collar’ jobs, especially in small and medium enterprises (SMEs).




Last update: 02/11/2011  |Top