Action Plan for Jobs

Action Plan for Jobs
Name	Action Plan for Jobs
Type	Policy initiative
Announced	2012
Jurisdiction	Republic of Ireland
Responsible	Enda Kenny Government
Minister	Richard Bruton
Status	Implemented

Action Plan for Jobs The Action Plan for Jobs was a policy initiative introduced by the Enda Kenny administration in 2012 to stimulate employment, support exporters, attract investment, and reform public supports. It coordinated measures across ministries including Department of Jobs, Enterprise and Innovation, Department of Finance, and Department of Social Protection while interfacing with agencies such as Enterprise Ireland, IDA Ireland, and Local Enterprise Office networks. The programme drew on precedents from stimulus packages such as the Marshall Plan, Enterprise 2025 proposals, and European strategies including the Europe 2020 strategy.

Background and Objectives

The initiative followed the 2008–2011 fiscal and banking crises that affected the Irish banking crisis and led to the 2010 European Union–International Monetary Fund bailout for Ireland. Objectives included reducing unemployment rates that peaked after the collapse of the Celtic Tiger, supporting indigenous firms like those represented by Small Firms Association (Ireland) and Irish Exporters Association, and boosting foreign direct investment channeled through IDA Ireland targets. It aimed to align with commitments under the Programme for Government (Ireland, 2011) and to complement fiscal consolidation measures pursued by Brian Lenihan Jnr and Michael Noonan.

Key Measures and Programmes

Measures combined demand-side supports, supply-side reforms, and institutional changes. Demand-side elements featured export promotion via Enterprise Ireland grant schemes, sectoral supports for construction-related firms, and targeted procurement reforms involving Office of Government Procurement (Ireland). Supply-side actions included tax and regulatory adjustments coordinated with Revenue Commissioners (Ireland) and efforts to reduce costs for indigenous industry alongside wage flexibility dialogues involving Irish Congress of Trade Unions and employer bodies such as the Irish Business and Employers Confederation. Skills and activation programmes were delivered through SOLAS (Further Education and Training Authority), Education and Training Boards (ETBs), and rollout of apprenticeships modeled partially on systems in Germany and Switzerland. Investment attraction combined capital incentives and marketing by IDA Ireland aimed at multinational sectors like pharmaceuticals (notably firms such as Pfizer and Johnson & Johnson), information and communications technology with actors including Google (company) and Apple Inc., and financial services centered in Dublin (city)'s International Financial Services Centre (IFSC).

Implementation and Administration

Administration relied on cross-departmental governance with annual reports coordinated by the Department of Jobs, Enterprise and Innovation and stakeholder engagement through bodies like Chambers Ireland and Small Firms Association (Ireland). Implementation drew on public agencies including Local Enterprise Offices for microfirm support and Enterprise Ireland for scaling exporters; procurement reforms were overseen by the Office of Government Procurement (Ireland). Performance monitoring used indicators such as unemployment published by the Central Statistics Office (Ireland) and investment flows reported by IDA Ireland and Eurostat. Funding sources combined budgetary allocations approved by the Oireachtas with targeted EU funding instruments including structural funds under the European Regional Development Fund.

Economic Impact and Evaluation

Evaluations by domestic analysts, think tanks like ESRI and international institutions including the International Monetary Fund and European Commission assessed employment gains, investment attraction, and export performance. Unemployment fell from crisis peaks as multinational employment expanded in sectors led by Pharmaceutical industry firms and technology multinationals operating out of Dublin (city) and regional hubs like Cork (city) and Galway (city). Export growth benefited from strengthened links between Enterprise Ireland clients and global value chains involving companies such as Medtronic and Microsoft. Macroeconomic indicators reported by Central Statistics Office (Ireland) and Eurostat showed recovery in GDP and current account balances, though debates persisted about the role of tax policy instruments like the 12.5% Corporation tax rate in attracting multinationals.

Criticism and Controversy

Critics from academic, union, and civil society quarters — including commentators from Trinity College Dublin, University College Dublin, the Irish Congress of Trade Unions, and NGOs — argued the plan over-emphasised multinational attraction relative to indigenous firm development. Controversies included disputes over whether procurement reforms advantaged larger firms represented by Irish Business and Employers Confederation affiliates, the adequacy of supports for regions such as Donegal (county) and Leitrim (county), and concerns about social consequences raised by analysts at TASC (Think-tank). Debate also focused on fiscal trade-offs with austerity measures overseen by ministers like Michael Noonan and perceived reliance on tax-competitive strategies similar to those criticised in discussions of the LuxLeaks and Apple Inc. v. Commission.

Legacy and Subsequent Developments

The initiative influenced successor programmes under subsequent administrations, informing frameworks such as the Action Plan for Jobs 2016 iterations and contributing to enterprise policy evolution under later ministers including Leo Varadkar and Paschal Donohoe. Institutional changes persisted in strengthened roles for Enterprise Ireland, IDA Ireland, and Local Enterprise Office networks, and in expanded apprenticeships via SOLAS. Lessons drawn from the plan shaped debates in EU policy fora including European Semester dialogues and national strategies aligned with Europe 2020 targets. The policy remains a reference point in analyses of post-crisis Irish recovery alongside other events like the growth of the Tech sector in Ireland and ongoing discussions about corporate taxation and regional development.

Category:Economic policy of the Republic of Ireland