Ireland had not chaired a ministerial meeting at the Organisation for Economic Co-operation and Development (OECD), the club of the world's 34 most industrialised countries, for two decades.
So when Tánaiste and Minister for Social Protection Joan Burton was asked to lead yesterday's meeting on "Building More Resilient and Inclusive Labour Markets", it was affirmation of Ireland's position as one of the OECD's star pupils.
“We in Ireland have been trying to follow the broad policy lines identified today, and they have served us well,” Ms Burton said in her closing statement.
The policies listed by Ms Burton were: a job-friendly welfare system, encouraging people to find work, maintaining investment in education and skills, and wage negotiations that reflect changes in productivity and competitiveness.
After tongue-tripping over the word "Tánaiste", Angel Gurria, the secretary general of the OECD, recalled how the Archbishop of Dublin told him he would have to import Polish priests to minister to the influx of workers during the boom.
“Then it went south very quickly,” Mr Gurria said. “You had to deal with fiscal and banking issues. A massive part of GDP got trapped in negotiations.”
On recent visits to Ireland, Mr Gurria said he has noticed “a very convinced public opinion, a can-do attitude. Because the Irish have overcome such difficult times, there’s a new kind of confidence.”
The purpose of the ministerial meeting, said Ms Burton, was to determine, “How do we avoid ever having such an economic shock again?”
Employment for ageing
The final statement recommended that member states address employment for the ageing and integrate mental health and work policy.
The OECD’s quarterly employment report issued yesterday shows that 55.8 per cent of 55-64 year olds are employed in Ireland, compared to 63.5 per cent of the population at large.
Though labour market conditions in the industrialised world are improving, Mr Gurria said, “We are still living in the shadow of a long period of high unemployment and underemployment.” Forty million people in the OECD remain without work, eight million more than before the crisis.
Ms Burton told how Ireland lost 330,000 jobs – nearly 15 per cent of total employment. Joblessness has fallen an average 1 per cent a year, and should go below 8 per cent by the end of 2016, she said.
“The biggest human crisis we have is unemployment. I’m not sure the European model can withstand widespread unemployment.”
Economic bonus
The Tánaiste said Ireland’s rapidly expanding population – some 11 per cent of the population are immigrants – is an economic bonus. Immigrants have a lower than average jobless rate, she said.
In most OECD countries, “income inequality is at its highest in 30 years,” Mr Gurria said, “all in the context of profound changes brought about by globalisation, demographics and the digital economy.”
Ireland and the 33 other OECD countries committed to addressing growing inequality by promoting job skills, early childcare, income support for the jobless and low-paid, and gender equality.
Ms Burton said they would address the quality as well as the quantity of jobs, in terms of decent pay, economic security, reasonable contracts and the quality of the work environment.
Ireland’s welfare system “was effective in limiting the effect of the downturn on poverty and equality,” Ms Burton said. “We have been able to maintain a sense of social cohesion in Ireland, because . . . we have been able to maintain a certain level of income even for those people who suffered the worst shock of all, the loss of their job or their business.”
Irish leaders “are regulars here,” Mr Gurria concluded. “The fact they are doing so well will encourage us to invite them to chair more of our events.”
