Where is the Govt's action plan on jobs?

Consumer sentiment rose to its highest level in two years during January, according to new data released this week. Coming in the same week as the latest live register figures showing 434,700 people signing on, representing an unemployment rate of 12.7 per cent, one is forced to wonder if the mood of consumers is overly optimistic that the worst of the recession is behind us. The live register figures apart, there are signs everywhere, economists and economic commentators tell us, that we do appear to be turning a corner - or at least that we have reached the bottom. However, until the jobs picture improves, it is all rather academic. 2010 may have begun with a bit more optimism in the air than was the case in January 2009, and while there has been an easing of fears about Ireland's economic prospects, try telling those who find themselves on the dole that things are getting better. The reality is that we will not be out of the woods until employment growth starts again. According to the recent Manpower Employment Outlook for the first quarter of this year, jobseekers face still gloomy hiring prospects this quarter with around 80 per cent of employers predicting no increase in headcount and 17 per cent saying there will be a decrease in employment in their businesses. Companies are still closing their doors on a daily basis and some 335 jobs are being lost per day. A walk down any street in any rural town will tell its own story about any nascent recovery. Businesses are struggling to stay open and 'for sale' and 'to let' signs are more evident than ever. Employment growth traditionally lags economic recovery by some time so no matter what the influential academics or Government politicians say about the bottom being reached, this crisis is not over. Many of those who find themselves without a job right now can see no light at the end of the tunnel for the present and the Government to date has failed to give a lead in putting forward realistic job-creation policies. The Taoiseach and Minister for Finance may have earned praise from the EU and IMF for robust policy decisions in relation to the budget and reining in public spending - all moves that are absolutely necessary - but employment maintenance and job creation have so far not been given the priority they deserve. Like a lone voice in the wilderness, the small and medium enterprises group ISME has spent much of the past year castigating the Government for its inertia when it comes to tackling the key issue of jobs, saying this will continue to retard any economic recovery unless tackled head-on. ISME's Mark Fielding says that if the Government is serious about steering the country on the path to growth once again, it needs to realise that a stable jobs market is crucial to consumer confidence, and therefore spending. "What is most disconcerting is that the Government seems to be completely paralysed and bereft of ideas," he says. ISME represents small businesses and, as such, is only too well aware of the real difficulties of companies in retaining jobs, accessing credit from the banks and simply keeping their doors open. It is suggesting a broadly-based 'think tank' to come up with the necessary ideas to kick-start job creation and devise a roadmap out of the current malaise. This group would be made up of people from the SME sector (the traditional backbone of any economy), the ESRI, Central Bank, Forfas and the unions, among others, and would report within a short timeframe with recommendations on how to stimulate jobs in the economy. In the absence of any action plans coming from Government itself, surely such well-intentioned suggestions could be taken on board as part of an overall strategy to deal with the serious employment crisis this country now faces.