AS long-term unemployment increases by 4.6%, ISME, the Irish Small & Medium Enterprises Association, has called for renewed effort from Government to tackle the jobless situation by increasing support for SMEs – the main job creators. The Association warned of the long-term effects on the economy and the danger of social unrest as the jobless generation increases.
The latest live register figures from the CSO confirm that unemployment remains stubbornly high with 434,200 people claiming assistance, however the number of long-term claimants has increased by 4.6%, up 8,344 in the year. Just as worrying is the reduction in persons under 25 claiming, down from 19.3% in October 2010 to 16.6%, as a result of wholesale emigration. The standardised unemployment rate remains at 14.8%,
According to ISME Chief Executive, Mark Fielding, “The ‘Action Plan for Jobs’ is not working for the SME sector and it is unlikely to work, if government imposed costs continue to increase. Added to that is the uncertainty generated by polar opposite proposals from cabinet on job creation and sick pay schemes. In addition, the lack of progress on public sector cost reduction and inefficiencies under the Croke Park Agreement, must be remedied”.
The Association demands the following, a full overhaul of all government influenced business costs with a target of a reduction to below the EU average for all.
They also want Government to introduce an Employment Incentive scheme to provide subsidies to employers for each additional job created. A reduction in state assistance for those who refuse job offers – two offers at a maximum as well as a view to address the lack of bank credit for SMEs.
“Jobs will be created when the Government prioritises SMEs and job creation. It is essential that we kick-start the domestic economy’s recovery with financial support aimed at maintaining and creating employment, a reduction in state costs and social welfare inhibitors to work. Small businesses will begin recruiting again when costs reduce,” concluded Fielding.
Meantime, the organisations National Conference which is to be held at the RDS, later this week will hear “SMEs – The Key to the Future”.
At the announcement, ISME Chief Executive Mark Fielding said: “Competitiveness is of paramount importance for the private sector; however, similar criteria must be imposed on the sheltered public sector so that we can have a world-class administration, funded by our taxation. The Croke Park agreement is central to reform and the issues will be debated at the conference by the people involved.”
ISME Chairman John Ryan said: “While we continue, nationally, to experience an economic recession it is heartening to see that SMEs continue to strive for survival, revival and indeed success. Despite the economic uncertainty, we as business owners continue to lead by example, proving our resilience and forward-looking nature. We are delighted to have so many successful and experienced entrepreneurs speaking and attending the conference this year. Without the SME owner-manager’s persistence the country’s economy would be far worse.”
