'Think tank' only way out of jobs crisis, claims ISME

The Irish Small & Medium Enterprises Association (ISME) has called for the immediate introduction of a jobs 'think tank' to address the most immediate crisis facing the economy, the crumbling labour market. Reacting to the latest live register figures, the association demanded that urgent action was necessary to prevent further haemorrhaging of jobs in response to Government inaction. The latest seasonally adjusted live register figures confirm that 434,700 people are claiming social welfare assistance, up 110,600 on the corresponding period last year, representing a record increase of 34 per cent. The standardised unemployment rate stands at 12.7 per cent, up from 9.4 per cent at the same period last year. ISME chief executive Mark Fielding said: "The association is disappointed, but not surprised, at the latest poor employment figures. All the indications from member companies was that the first quarter of 2010, in particular, was going to remain bleak with thousands of job losses and hundreds of company closures. Unfortunately, the bad weather in the first couple of weeks of the year only exacerbated the problem. The major concern is that there does not seem to be any light at the end of the tunnel, with policymakers caught like 'rabbits in a headlight' not knowing how to address the issue." He said the Government needs to realise the labour market is in crisis and that the problem will not be solved by forced emigration and a reduction in the labour market, which only blurs the picture and undermines the true extent of the problem. What is required is a clear and targeted policy to include employment maintenance, job creation and invariably moving individuals from the dole queue back into employment. This policy will not work unless it is driven by a committed grouping whose priorities are job retention and creation, Mr Fielding added. ISME called on the Government to immediately introduce a jobs 'think tank', consisting of representatives of the business community, including SME representatives, the unions, the ESRI, the Central Bank and Forfas, among others, with a remit to devise a strategy to address the ongoing crisis. "The grouping would report back with recommendations within a short timeframe. It is obvious that social partnership, as we know it, no longer exists; consequently, a new grouping is urgently required to assist the Government in implementing the appropriate measures, before it is too late for all concerned." The association has described the latest redundancy figures as "dire" and represents a bad start to the year, saying that further job losses are imminent, particularly in the next number of months. The Association castigated the Government for their lack of ideas in addressing an issue that threatens to delay potential growth in the economy. According to Mark Fielding: "The country is in a state of flux, with 335 redundancies a day already being announced, following on from a disastrous 2009. Small business owners are indicating that this situation will deteriorate further, with many companies just about hanging on by their fingernails, unless economic conditions improve. "If the Government is serious about steering the country on the path to growth, they need to realise that a stable jobs market is essential to both confidence and spending, key ingredients to any upturn. What is most disconcerting is that the Government seems to be completely paralysed and bereft of ideas. With the banks and big builder bailouts well in motion, it is now absolutely essential that attention is turned to the biggest threat to the economy, the deteriorating jobs market." He said that action is now needed to address Ireland's low levels of confidence, badly damaged competitiveness and international reputation. The Government, he added, needs to propose and implement a long overdue action plan for the economy's future, without delay, with job maintenance and creation "at the very top of the list".