Responding to the Unemployment Crisis
Presentation to the Joint Oireachtas Committee on
Jobs, Social Protection and Education
from
FIT (Fastrack into Information Technology)
on the 16th November 2011
To Discuss
- Preventing a ‘lost generation’ due to long term structural
unemployment
- Why FIT is uniquely placed to respond to the unemployment
crisis
- The imperative to scale up FIT’s “20,000 into Employment by
2020” Strategy - so that 25,000 long-term unemployed people
get back into jobs by 2015
Representatives from FIT
Tom Rourke (IBM), FIT Board Member
Anna Pringle (NTR), FIT Board Member
Peter Davitt, CEO
George Ryan, Programme Manager
Responding to the Unemployment Crisis
Introduction
This paper outlines FIT’s proposals to the Joint Oireachtas Committee on Jobs, Social
Protection and Education. It focuses on those job seekers deemed most at risk of long-term,
structural unemployment, identified in CSO statistics as those having low education
qualifications and described by the ESRI as being the most vulnerable in the labour market
and most likely to experience long-term unemployment as a result of their socio-economic
profile. The intention of these proposals is to prevent the emergence of a ‘lost generation’
predominantly made up of
younger adults as a result
of the current economic
crisis - a crisis which like all
previous economic crises
will eventually pass, when
national economies
respond to positive global
economic conditions.
The Troika of the EU
Commission, ECB and IMF
recently expressed the vital
need to prevent this ‘lost
Source: CSO – September 2011
generation’ scenario in
their October 2011 review.
A key requirement in preventing such waste and exclusion is ensuring the ongoing upskilling
and employability of job seekers in readiness for the resumption of growth.
Since 2008, unemployment levels in Ireland have been rapidly increasing with 154,319 on
the Live Register in April 2007 growing to 437,441 in September 2011. Of particular
concern is the on-going increase in long-term unemployment. There are now 183,399
people on the register for more than a year. There is therefore, undoubtedly, a significant
number of people in Ireland that are in need of assistance to overcome unemployment. In
light of this, the FIT Board believe it is necessary to persist in the development and
promotion of interventions which enable marginalised job seekers to acquire skills which
will allow them to compete effectively in the labour market.
As the NESC Report on Supports and Services for Unemployed Jobseekers 2011 points out,
when entry to employment is difficult to achieve, the priority of public policy must be to
support those that are unemployed to improve their employability by participating in
training through which they will gain market-relevant skills.
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Responding to the Unemployment Crisis
Addressing the Needs of the Most Vulnerable through FIT
The chart presented below, from the CSO identifies 99,600 unemployed persons who are
most at risk of long-term structural unemployment.
The profile of unemployed persons by age/gender is shown in the chart on the left which quantifies
the profile of persons
most in need of the
proposed intervention.
Males in the age range
15-45 are a particularly
large group within the
overall numbers of
unemployed persons.
Programme design and
delivery would be
cognisant of the needs of
the different groups
represented in the chart
opposite.
Despite the current economic volatility, ICT skills requirements continue to permeate across
industry sectors and will play a crucial role in terms of Ireland’s competitiveness and labour
market growth. The proposals outlined are based on the experience of the FIT Initiative
which over the last 12 years has focused on the effective integration of marginalised job
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Responding to the Unemployment Crisis
seekers through the acquisition of in-demand technology skills. During that period this
industry initiative has facilitated the training of 11,000 marginalsed job seekers of which
8,500 have secured employment. FIT’s success can be attributed to:
-
FIT’s in-depth knowledge of the needs and motivations of marginalised job seekers
A keen appreciation of industry skills needs (informed by its industry membership)
FIT’s ability to coordinate access to public provision
It’s ongoing mentoring of participants for a period of three years post training
The FIT Board, while pleased with the achievements that the Initiative has realised since its
commencement, believe that there is much more to be done to assist people in Ireland that
are facing the stark prospect of long-term unemployed leading to poverty and social
exclusion.
FIT Driving the Skills Agenda
FIT is an industry-led initiative which works in close collaboration with government
departments and national education and training agencies, local development organisations
and a host of community
based organisations.
FIT’s mission is to promote
an inclusive Smart Economy
by creating a fast track to
marketable technical skills
for those at risk of
unemployment long term. It
is the primary industry skills
development initiative
facilitating collaboration with
government, education &
training providers and
disadvantaged communities to enable greater access to employment for marginalised job
seekers
FIT Ltd, a registered charity and not for profit organisation, was established in 1999. The
Initiative develops and promotes technology-based programmes and career development
opportunities for job seekers who have become detached from the labour market in an
increasingly knowledge-based economy.
Since its inception the FIT Initiative has grown steadily to over 3,500 job seekers in training
and a further 2,000 receiving mentoring supports in the current year. This growth while
significant has primarily been restricted through limited access to public training provision
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Responding to the Unemployment Crisis
and funding. An independent Value for Money Review completed in early 2011 concluded
that the FIT Initiative was highly cost effective and in the current climate should be doing
significantly more, in order to make a greater impact on the current unemployment crisis.
Accelerating and Scaling up the FIT Response - Key to Economic Recovery
In January 2011 the FIT Board reviewed its strategy and committed to expand its response
to the unemployment crisis. It set out a new strategy of supporting “20,000 into
employment by 2020”. It is now of the view that this plan needs to be accelerated and
scaled up to address the rapid and continued deterioration in the unemployment crisis that
now faces the country.
From the FIT experience to date we believe that the right training interventions, providing a
range of developmental supports, could support the activation, engagement and
progression of 100,000 job seekers in the 4 year period 2012 - 2015 helping to stimulate
recovery and preventing the emergence of a ‘lost generation’ . In addition to supporting
upskilling and elevating employability this initiative will have the tangible goal of placing
25,000 job seekers into employment during the life of the programme.
All candidates would be invited / encouraged to participate in Training for Employment
(TFE) programme or alternatively be required to
engage in an Employability Programme (EP). The
Scaling up of the FIT initiative range of programmes on offer would facilitate
“25,000 into employment by 2015”
skill development / upskilling and the
maintenance and enhancement of
employability.
As heretofore the proposed programme of activity would be co-ordinated by FIT, operating
throughout the country in collaboration with Industry, FAS (SOLAS), VECs (LETBs), NEES and
local development agencies transforming existing public provision - responsive to the
changing needs of the labour market and economy.
The FIT Experience Can Advance the Development of an Active Labour
Market
A key priority for government is to promote an active rather than passive labour market.
FIT, through its activities and engagement of large numbers of marginalised job seekers over
the last 12 years has developed the know-how, pedagogy and competence to equip large
numbers with in-demand technology skills responsive to industry needs.
To, date FIT has developed over 30 market-led technology training programmes covering a
range of areas including Office Administration, Customer Care, PC Maintenance and
Networking, Logistics, Renewable Energies etc. In response to emerging needs and with the
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Responding to the Unemployment Crisis
support of industry FIT more recently has developed new curricula, with the collaboration of
FAS, in areas such as Cloud Computing, Mobile Technologies and Games Development.
With regard to progression, as an industry initiative, FIT has developed a broad network of
industry / employers partners and collaborators throughout the country. In addition to
placement opportunities companies provide a range supports to FIT including assistance
with mentoring and interview techniques, the provision of work experience / internship
opportunities, the facilitation of company visits, technical inputs into programmes and the
provision of software and online training resources.
Industry collaborators engage with FIT because it provides them with access to individuals
with the relevant skills to ‘hit the ground running’. Four brief examples come to mind to
reinforce this point:
-
-
-
-
A major global technology company recently approached FIT with regard to initiating
a tailored Customer Care Programme as they are unable to recruit sufficient
numbers of people with the appropriate skills and were experiencing unsatisfactory
levels of churn despite there being a recession.
Another major multi-national just last week facilitated a company visit for learners
on a FIT course. During the visit the FIT participants were hosted by a group of some
twenty employees who shared their experiences / background, none had a thirdlevel qualification, two were early-school leavers, four were lone-parents, and others
had previously worked in construction as labourers, electricians and plumbers etc.
A major games company recently located in Ireland and at a meeting with FIT
indicated what they need is ready access to individuals that have a passion for
gaming, a proficiency in ICT and an attention to customer care / customer services.
A global management consulting and technology services company has partnered
with FIT to provide support to and have access to candidates participating of FIT
programmes in emerging technologies.
From the FIT perspective there is a demand for smart people with smart skills right across
industry sectors.
The FIT Initiative over the years has developed a broad network of local development
agencies and community organisations throughout the country that support and promote
the work of FIT at a local level. With their support FIT has engaged an additional 12,000
individuals in digital inclusion initiatives since 2007.
Emerging Technologies Provide the Path to Employment and Inclusion
A recent IDC report found that in five years’ time European employers expect less than 10%
of jobs to be available to people without ICT skills. The same sentiment has influenced EU
policy and resulted in the development of the Commission communication ‘A Digital Agenda
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Responding to the Unemployment Crisis
for Europe’ which emphasises the centrality of ICT in the economic well-being of Europe.
A total transformation has taken place in sectors such as tourism, hospitality, music, leisure,
video game and television where new technology has led to the adoption of totally different
business models that in the past. Likewise telecommunications industries have experienced
change at a breath taking pace with once
dominant players such as Nokia now trying to
‘European employers expect less
reinvent their business strategies to catch up
with the smartphone revolution. Advertising,
than 10% of jobs to be available to
marketing, retail and e-commerce sectors have
people without ICT skills’
equally been affected fundamentally in the way
IDC Report - Post Crisis: e - Skills Are
they plan and conduct their businesses by the
Needed to Drive Europe's Innovation
dramatic growth in broadband internet
Society (November 2009)
availability.
The sectors where ICTs have arguably had
lesser influence include construction, which has
lost almost 80,000 jobs in Ireland and is not expected to recover to anywhere near peak
employment levels, requiring most of those laid off to acquire new skills, face long term
unemployment or emigrate. FIT has already successfully retrained construction operatives
to enter the knowledge economy and they have clearly demonstrated their ability to attain
technology skills and gain ICT centred jobs.
Technology driven change will be even more dramatic in the next five years
fundamentally changing the way we all work. Cloud and mobile are among the
technologies enabling this revolutionary change and providing significant opportunities for
productivity improvement and economic growth. Microsoft CEO, Steve Ballmer has said that
Microsoft is betting its future on the cloud. He illustrated that by predicting that 90% of
Microsoft’s 40,000 employees will be working on cloud matters within a few years and also
said that all software will eventually be in the cloud.
Market-Led Skills for Employment in a Labour Market in Transformation
What do these trends mean for the skills needed in modern economies and particularly for
Ireland which is one of the most globally integrated economies in terms of it’s larger than
average proportion of economic activity dependent on trade and tourism? The triangle
diagram shown below, taken from the IDC report, illustrates the ICT skills requirements for
working age populations in the modern economy.
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Responding to the Unemployment Crisis
Ireland is an exemplar of a
modern economy and will
need to increase its workforce
in most sectors (less so in
construction) as global
conditions improve. However
it will need to be a very
different workforce, within
which practically every worker
will need a level of ICT skills
along with specific sectoral
knowledge and competencies.
The triangle diagram
illustrates the general digital
literacy that will be a
minimum skills requirement and will apply to the majority of workers across all sectors.
There will also be a requirement for a significant number of workers who have the
appropriate proficiency in ICT skills to use technology based systems and devices. These two
skills profiles make up the cohort described in the triangle diagram as ‘Skills Demand for
non-ICT Professional Job Roles’. A smaller but not insignificant number of workers will be
required to have more advanced ICT skills for ICT Professional and ICT Innovation roles.
The FIT proposals responds to these trends and plan to equip long term unemployed job
seekers with a range of new skills, both ICT related at the different levels described above,
and sector specific skills which are nowadays often embedded in ICT systems and processes
for example book keeping, customer services, data-base and office administration,
warehousing and distribution etc. For those with an aptitude for ICT Professional roles the
initiative will offer market led training in existing and emerging technologies e.g. Operating
Systems, PC Maintenance, Cloud Computing, Mobile Technologies, and Game Development
etc.
The Initiative will incorporate two strands. The first will be a ‘Training for Employment’
strand imparting specific ICT/technology and sectoral skills and the second will be an
‘Employability’ strand addressing employability issues such as literacy / numeracy, basic
skills / digital inclusion, career guidance, professional development etc.
Policy Needs Practice and Urgent Action is Called For!
In response to the unemployment problem and in line with other countries in the EU,
Ireland has adopted a range of targets to increase the employment rate by 2020.
- Smart Growth: developing an economy based on knowledge and innovation;
- Sustainable Growth: promoting a more resource efficient, greener and more competitive
economy;
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Responding to the Unemployment Crisis
- Inclusive Growth: fostering a high-employment economy delivering social and territorial
cohesion.
Ireland’s National Reform Programme 2011 highlights the main bottlenecks including: longterm unemployment and access to
opportunities for reskilling and
upskilling. The FIT Initiative
complements national & EU policy
and the proposed scaling up of the
FIT Initiative will embody a regional
approach ensuring access to all long
term unemployed job seekers
regardless of location as indicated
in the chart below. All regions
would have provision proportionate
to the number of unemployed job
seekers in the region. Delivery
would focus on areas of greater
disadvantage within each region
and appropriate strategies for
activation and delivery would be
put in place to serve vulnerable
urban and rural communities and
individuals.
A total target group of 100,000 unemployed persons would be activated by the initiative.
Over the four year period 2012-2015 a total of 45,000 would be engaged in Training for
Employment (TFE) and 45,000 in Employability interventions.
The proposals outlined by FIT are ambitious but achievable within the time-frame proposed.
It will require the engagement and coordination of a variety of stakeholders including
industry, government, education and training providers, local development agencies and
communities. At a time of national austerity it will require no additional funds but rather a
prioritisation of existing funds and effective utilisation of public, private and community
facilities
in
a
coordinated
and
concerted
fashion.
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Responding to the Unemployment Crisis
Recommendations:
The FIT Board believes that there is much more that can be done to assist people in Ireland
that are facing the stark prospect of long-term unemployed leading to poverty and social
exclusion while stimulating future growth and increased productivity.
FIT presents the following recommendations to the Joint Committee to prevent a ‘lost
generation’ and to stem the flow into structural long term unemployment.
1. Recognise and build on the expertise and experience of the FIT Initiative in the
development of a world class Further Education and Training System for Ireland and
in contributing to the effective integration of NEES, Solas & LETB.
2. Support the scaling up of the FIT initiative to address the needs of the 100,000 long
term unemployed jobseekers who are most disadvantaged due to their lower
educational attainment / skills and socio-economic profile with the goal of placing
25,000 into employment by 2015.
3. Promote strong links between industry and public training provision by endorsing the
FIT strategy to expand its range of programmes to enable disadvantaged jobseekers
gain access to ICT / technology and employability skills - as a gateway to jobs in a
wide variety of sectors which are set to provide the next wave of employment in our
restructured economy.
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Appendix 1
FIT Board of Directors:
1. Fiona Mullan
HR Director
2. Anna Pringle
NTR
3. Tom Rourke
Strategic Value Creation
Microsoft
Chairperson FIT
Group HR & Communications
Director
IBM, Ireland
4. Aengus McClean
AOL Development
AOL
5. Aidan Gregan
Director
Accenture
6. Gary O’Callaghan
Director of Wind Energy
Siemens
7. Liam Ryan
Managing Director
SAP
8. Maria Campbell
Sisk Healthcare
9. Niamh Counihan
Human Resources Director
International
Director
10.
Austin
McCabe
Managing Director
Symantec
11.
Kieran
Sweeney
Manager
Version1
Finance Manager
Origins Enterprises Plc
Lionbridge
12.
Derek Wilson
13.
Kate McCarthy General Manager
Skillport
14.
Colm Greaves
Maxim
15.
Paul Sweetman Director
Director
ICT Ireland, IBEC
16.
Eugene
McGinty
Director
Welocalise
17.
Paul
O’Riordan
Vice-President
Oracle Corporation
18.
Manus
Hanratty
CEO
SpunOut.ie
19.
Tony O’Dowd
CEO
Alchemy Software
20.
Derek Wilson
Director
Origin Enterprises
Responding to the Unemployment Crisis
21.
FIT
Glynn, Darren
Director, Global Customer
Solutions (CS) Process, Product
Integration & VOC
PayPal
1
Appendix 2
FIT Industry Training Programmes – 2011
Course Title
(Full-time)
1.
2.
Business Through Computers
Warehousing and Data Entry
19.
20.
IT Business Systems
Audio Visual Production for Broadcast
3.
4.
5.
IT Office Administration & Design
IT & Customer Care
Certified Professional MCP
21.
22.
23.
Software Quality Assurance Tester
Software Localisation Engineer
Certified Internet Webmaster
6.
Microsoft Certified Systems Administrator
24.
IT & Multi-Media Programme
7.
8.
9.
10.
11.
PC Support & Maintenance
IT Retail Sales & Customer Care
IT & Communication Skills
IT & Reception Skills
Programming
25.
26.
27.
28.
29.
Call Centre Programme
Broadband
IT Technology Sales & Customer Care
Software Test Analyst
Programming 1 - Junior Programmer (.NET)
12.
Wind Turbine Maintenance Technician
30.
Programming 2 - Senior Programmer (Java)
13.
Foundation in Data-Base Management Systems
31.
Programming 3 - C ++ Specialisation
14.
15.
Advanced Computers and Business Applications
IT Supervisory Management
32.
33.
Customer Service Programme
16.
17.
18.
Cloud Applications & Development
Network Specialist
Games Development
34.
35.
36.
Mobile Technologies - Developing Apps (Android,
Apple)
Train the IT Trainer
MCP / MCITP
ICT Information & Internet Securities
FIT Employability / Foundational Programmes:
Course Title
8.
TFE Tasters
(Part Time)
1.
Work Positive
8a.
IT & Office Procedures
2.
Start-IT
8b.
IT & Basic PC Maintenance
3.
e-Cert
8c.
Retail & Customer Care Programme
4.
My IT
8d.
IT/Reception Skills
5.
My Skills Audit
8e.
Warehousing & Data-base
6.
Preparation for Work Programme
7.
Next Steps Mentoring
1.
Programming 4 – (C# Specialisation)
11.
CLOUD Software as a Service (SAAS)
2.
Smart Grid Technology
12.
CLOUD Platform As A Service (PAAS)
3.
Off-shore Wind Turbine Technician
13.
CLOUD Infrastructure As A Service (IAAS)
4.
Web Development Technician (HTML / Java)
14.
Customer Relationship Management
5.
Creative Media Technologies (AR / 3D)
Digital Marketing
15.
Medical Device Maintenance
CCNA
16.
17.
Medical Inventory Management
Medical Sales & Distribution
8.
Web and Relational Data-bases
18.
Games Development II
9.
Project Management
19.
Mobile Technologies II (Windows 7)
10.
Virtualisation (VMWare)
20.
SharePoint Support Engineer
Training Programmes in Development for 2012:
6.
7.
FIT