Labour market has improved but problems persist
I recently attended the annual conference of business group Isme which addressed the theme of people and purpose.
It was well attended, with Norah Casey and Dublin manager Jim Gavin giving headline speeches.
Also well-received was the speech by Christopher Paye of Jobs.ie on the subject of winning the race for talent —in other words how to attract the best workers, with a focus on flexible working hours and working from home. The mental health of employees was also addressed.
This got me thinking about the Irish labour market in general and the improvements we’ve seen in recent years and the challenges it still faces.
On the positive side, we currently have a record 2.3m people at work, and the unemployment rate has fallen from 16% at the height of the financial crisis to just above 5%.
But as an economist, I am being constantly asked about the quality of the new jobs, and there are certainly some questions to answer. The evidence clearly shows that unequal pay for women has been a towering issue for years.
There are limited signs that the issue is being addressed and there is also the darker subject of sexual harassment in the workplace, which simply cannot be ignored.
And another issue that I have a serious gripe with is the “it’s not what you know but who you know” recruitment practices.
In my opinion, this is a huge problem in Ireland, and it certainly doesn’t guarantee employers secure the best workers.
It’s one thing passing down the farm or the family business to your son or daughter, but it’s another getting your offspring or siblings into a prized job because you are friendly with the boss, at the expense of better-qualified candidates.
I’ve heard of too many cases of people being turned down for jobs, under these circumstances.
It beggars belief the number of people who boast about it. Somehow as a country we seem to think it’s fairly acceptable.
Another problem is the way school leavers and new graduates are treated by potential employers.
For a start, there should be more encouragement in second-level for students to take apprenticeships and away from the overcrowded university system.
Then there is the question of experience. How does the young applicant gain experience if no one is willing to provide experience in the first place?
And why are universities running courses, which aren’t cheap, when the opportunities at home for jobs in these fields are few and far between?
Many third-level colleges just wash their hands at the end of the course and appear to offer little support to students in finding jobs that match their respective skills.
Even so-called high-fliers are not guaranteed work when they immediately leave college. And then there are the employers who fail to tell applicants the reasons they didn’t get the job.
This should be done as a matter of course in these days of technology. Making excuses about the time and cost of responding to applicants will simply not do for young people who require feedback.
While on the surface things may look good on the employment front, there are a lot of underlying adverse issues that need addressing.
