UNEMPLOYMENT
Bottom Dog May Day 2013
Job Creation The solution to the Unemployment Crisis Back in 1978 the then Taoiseach, Jack Lynch, famously declared that if unemployment ever reached 100,000 the government of the day would have to resign. Today the numbers out of work is over four times that number and there is no sign of any government resignation. Indeed, the policies of fiscal austerity that feed the economic recession and in turn ensures that unemployment remains high continue to be doggedly pursued. Less than five years ago with an unemployment rate of around four percent, Ireland prided itself on having reached almost full employment. What happened in the meantime? Well, if some commentators are to be believed it seems that from around 2008 onwards some 300,000 Irish people decided to simply stop working and live off an overly generous social welfare system. Of course, this is nonsense and most people accept that the current mass unemployment arises from the severe economic recession that has hit most of the western world as a result of the international financial and banking crisis that began in 2008. In Ireland it is now widely agreed that the madness of the Celtic
Tiger years featuring the unsustainable lunacy of the Irish property bubble and its irresponsible banking practices and taxation policies, combined with a general downturn in Europe and the US have been responsible for crashing the economy and creating the resultant high rate of unemployment. The thing about unemployment is that with the onset of economic recession it rises very fast, but its fall is much slower even in improved economic circumstances. Another thing is that as the recession continues not only does unemployment remain stubbornly high but the rate of long-term and youth unemployment increases at an alarming rate. Of course, in the case of Ireland some of this process is somewhat alleviated by the traditional means of mass emigration. The policy response to all this by government and the EU seems to be largely about creating the illusion of action rather than any real attempt to stimulate the economy and create jobs. The official response to the unemployment crisis is largely around the theme of “activation” – the great buzz word of the day. What this essentially means is getting the unemployment to go around
BY Padraig Malone in endless – and often mindless – circles looking for jobs that are not there. The unemployed are threatened with either a reduction or the cutting off of their “jobseekers” payments if officialdom considers that their efforts to get work are not up to scratch. This approach is particularly favoured by the IMF/EU/ECB troika who believe that the Irish social welfare system coddles unemployed people through being far too generous and not punitive enough. The same mindset is also prevalent among Irish policymakers who are only too eager to take their cue from the troika on
this issue. However, in essence this is just a rehearsal of the same old tune of blaming the unemployed for unemployment. People who advocate and pursue such policies are themselves unlikely to have experienced sustained periods of unemployment in their own lives and nor are they likely to anytime soon. Quite simply being unemployed is no joke; it brings with it real economic and social hardship. What should be relatively simple things like providing food, clothing, light and heating, and a roof over the head is often a daily and debilitating struggle. Things, previously taken for granted, such as a night out, going to the cinema or buying a newspaper or a book become unaffordable luxuries. All this also leads to the disruption of social contacts, psychological pressures, domestic difficulties and an overall reduction in self- esteem for the people concerned. Those in politics, the media, academia and such like who prattle on about the unemployed having it too easy should try it themselves for a while. It is often asked why what is sometimes referred to as” the massed army
of the unemployed” does not mobilise in defence of itself. The argument is made that if over 400,000 unemployed were to take to the streets then indeed the prophesy of Jack Lynch would be fulfilled. Mention is sometimes made of the unemployed movement of the 1950s, which took to the streets and even had one its leaders elected to the Dáil. The truth of the matter is that most unemployed people do not see themselves as being part of any massed army but rather as vulnerable individuals going through what they hope is a temporary disruption to their lives. They are in constant hope that things will pick up and that they will be able to return to the world of work and economic wellbeing and they have little interest in drawing public attention to their current straitened circumstances. In Ireland unemployment is quite erroneously stigmatized as a sign of some form of personal inadequacy and as such mobilising the unemployed will always be something that sounds easy to do in theory but is almost impossible in reality. This was somewhat borne out by Mike Allen, the founding General Secretary of the Irish National Organisation of the Unemployed (INOU), when he said that the first aim of the organisation should be to make itself redundant. All that being said, there is a need for the rights and interests of unemployed people to be vindicated and for their voice to be heard and, in this respect, organisations like the INOU are important. The trade union movement also has a vital role to play in supporting unemployed workers and in ensuring that they are not abused by the system. Of course, the trade unions have a much broader interest in tackling the unemployment crisis because mass unemployment poses the greatest danger to the wages and conditions of their members who are working. Mass unemployment is not only bad for the unemployed; it is a blight on the whole of society. As a country and a society Ireland – with currently the fifth highest rate of unemployment in the European Union (behind Greece, Spain, Portugal and Slovakia) – has a bad historical record in terms of providing work for its people. As long as official Ireland continues to pride itself on the implementation of austerity policies to the exclusion of any real employment creation approach this lamentable position is unlikely to improve in the short to medium term. At its simplest, the solution to unemployment is the creation of jobs.
INTRODUCTION TO SOCIAL WELFARE By Frank McDonnell If you lose your job you should immediately apply for Jobseeker‟s Benefit (JB) or Jobseeker‟s Allowance (JA). You should apply at your local Social Welfare Office as soon as you lose your job. JOBSEEKERS BENEFIT (JB) Jobseeker‟s Benefit is a weekly payment if you are out of work and covered by social insurance (PRSI) contributions (both paid and credited). DO I QUALIFY FOR JOBSEEKER‟S BENEFIT? To qualify for JB you must be: • Resident in the State • Be aged under 66 • Be fully unemployed or unemployed for at least 4 days out of any consecutive 7 days • Meet the genuinely seeking work rule • Have enough PRSI contributions HOW DO I KNOW IF I HAVE ENOUGH PRSI CONTRIBUTIONS? You will have enough PRSI contributions if you satisfy either one of the following 2 ways: • Have 104 weeks paid PRSI contributions since starting work and • Have 39 weeks paid or credited PRSI contributions in the Relevant Tax Year (13 of the 39 must be paid contributions in the relevant tax year or certain other periods). OR • Have 104 weeks paid PRSI contributions since starting work and • Have 26 weeks paid PRSI contributions in the Relevant Tax Year and • Have 26 weeks paid PRSI contributions in the Tax Year prior to the Relevant Tax Year WHAT IS THE RELEVANT TAX YEAR? The relevant tax year is the tax year 2 years before you make a claim for a Jobseeker‟s Benefit payment. For making a claim for Jobseekers in 2013 the relevant tax year is 2011. HOW LONG CAN I GET JOBSEEKER‟S BENEFIT FOR? JB is paid for a maximum of: • 9 months if you have at least 260 paid PRSI contributions • 6 months if you have less than 260 paid PRSI contributions People getting JB for 6 months or more on 3rd April 2013(or 3 months for people with less than 260 contributions) will not be affected. CAN I GET ANOTHER PAYMENT WHEN MY JOBSEEKER‟S BENEFIT FINISHES? You may be able to claim a Jobseeker‟s Allowance payment if you meet the qualifying rules and pass a means test. JOBSEEKER‟S BENEFIT PAYMENT RATES 2013 Jobseekers Benefit €188.00 €124.80 € 29.80 € 14.90
Personal Rate Qualified Adult Each Qualified Child Each Qualified Child Half Rate JOBSEEKER‟S ALLOWANCE (JA)
If you do not qualify for a Jobseeker‟s Benefit payment you may qualify Jobseeker‟s Allowance. DO I QUALIFY FOR JOBSEEKER‟S ALLOWANCE To qualify for JA you must be: • Resident in the State • Aged 18 or over • Aged under 66 • Be fully unemployed or unemployed for at least 4 days out of any consecutive 7 days. • Genuinely seeking work and also • Satisfy a means test • Satisfy the Habitual Residence Condition JOBSEEKERS ALLOWANCE PAYMENT RATES 2013 AGE RATE 18-19 20-21 22-24 25 and over
PERSONAL RATE
QUALIFIED ADULT
€100.00 €100.00 €144.00 €188.00
€100.00 €100.00 €124.80 €124.80
IF I AM REFUSED A PAYMENT, CAN I APPEAL THAT DECISION? If you have been refused a payment, you can ask for that decision to be reviewed or you can appeal that refusal. For assistance with your appeal contact Frank McDonnell 087 Source: Irish National Organisation for the Unemployed (INOU)