Sunday, August 29, 2010

Work for Dole Scheme Announced

Details are sketchy at present. RTE report that roll-out of this programme is imminent. Unemployment claimants will be required to work 20 hours in community projects in return for unemployment payments should they be unable to find a job.
"Unlike applicants for job seekers benefit they will not be means tested and they can work part-time outside of the scheme as well. But if claimants do not turn up for the hours they are expected to work under the scheme, their dole will be stopped. The changes are being implemented as part of the expansion and development of the Community Services Programme and the Rural Social Scheme. It is expected that the changes will involve up to 10,000 new participants this year, rising to 40,000 over the course of two years"

I will post further details later as we know more about it. The human capital destruction taking place in Ireland at present will be the main legacy of this period and so activation policies like this are extremely important. The emphasis must be on avoiding spirals into long-run unemployment and preventing spells of unemployment from effectively stigmatising people out of the labour market. At first glance, this could be a very good policy but more details needed.

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