The Government must invest in measures to address long-term unemployment and training for low-skilled workers to avoid polarisation between Irish and migrant worker communities, according to a State advisory body.
The National Economic and Social Forum (NESF), in a report to be published today, has warned that Ireland has a much higher proportion of low-skilled workers (40 per cent of working-age males) compared with competing countries such as the UK (15 per cent) and Germany (20 per cent).
Such workers will face greater competition for jobs with migrant workers, which could lead to a growth in the number of dissatisfied low-skilled workers and the creation of polarised communities, it cautions.
A fair immigration system is also needed in which there is longer-term support, such as education, housing and healthcare, to help migrant workers and their families integrate into the wider community.
The NESF report, Creating A More Inclusive Labour Market, urges radical reform of the way the State spends €1 billion on welfare supports and other measures aimed at training and supporting low-skilled workers and vulnerable people.
"We're spending more than we ever did on this area, but much more could be achieved," said NESF policy analyst Gerard Walker. "However, work in this area is divided between eight Government departments and 13 agencies."
The report estimated that there is an underutilised labour force of about 175,000 people, which includes the 96,500 people officially unemployed and a further 78,500 looking for work.
The NESF says there is large scope for improving the value and effectiveness of tackling unemployment more successfully if sweeping changes are made to policies, institutions and measures in this area.
While the country has benefited from the economic boom of the last decade, it says the overall jobs growth has masked levels of unemployment in counties such as Donegal, Mayo, Cavan, Carlow, Waterford and Limerick.
In some of the worst unemployment blackspots in the country, unemployment rates are between 25 and 30 per cent. Far from being an aberration from the early 1980s, these blackspots are being replicated even in today's tight labour market.
Overall, the report argues that a more equal labour market approach makes economic sense by resulting in a more productive and higher-skilled workforce. Among its recommendations are:
A national strategy to co-ordinate employment and social inclusion measures that are shared between eight Government departments and 13 different agencies at a cost to the State of €1 billion a year.
Fundamental reform of State supports to tackle work disincentives, including the automatic payment of in-work payment support for people with children taking up low-paid work.
Free fees for part-time students engaged, for the first time, in taking occupationally relevant courses resulting in certificates, diplomas and primary degrees.
A formula for the sharing of workplace training costs for the up-skilling of all low-skilled workers between the State, employers and trade unions.
