Photo AI
Apart from taxation, discuss the different ways in which the Irish Government affects the labour force in Ireland. - Leaving Cert Business - Question (B) - 2021
Question (B)
Apart from taxation, discuss the different ways in which the Irish Government affects the labour force in Ireland.
Worked Solution & Example Answer:Apart from taxation, discuss the different ways in which the Irish Government affects the labour force in Ireland. - Leaving Cert Business - Question (B) - 2021
Step 1
As an employer/ Increased current expenditure on public sector wages/social welfare
Answer
The Irish Government can affect the labour force by increasing current expenditure on public sector wages and social welfare. This includes setting up national wage agreements for public sector workers, which could stimulate the economy as these workers are likely to have a higher disposable income. Additionally, increases in social welfare payments can lead to increased spending power for families, boosting overall demand in the economy.
For instance, should the government restore pay or enhance incentives for teachers and healthcare workers, this would not only aid in raising their disposable income but also attract more individuals to work in these critical sectors, thereby directly impacting the labour force.
Step 2
Increase capital expenditure
Answer
Another method is through increasing capital expenditure on infrastructure, schools, and hospitals. By investing in these areas, the government creates job opportunities in construction and related fields.
For example, the building of new schools or the development of the new children's hospital will lead to a direct need for skilled and unskilled workers, effectively expanding the labour force and providing enhanced facilities for the community.
Step 3
Government investments in Education and Training
Answer
The government can also influence the labour force by investing in education and training. This includes enhancing access to third level education and providing necessary training through organizations like SOLAS.
This approach not only prepares a workforce capable of meeting the demands of a modern economy but also assists adults looking to up-skill or reskill, thus supporting them in re-entering the labour market.
Step 4
Government Grants/Support for the Labour Force during Covid-19
Answer
During the recent Covid-19 pandemic, government support such as social welfare payments to impacted employees has helped maintain their income levels. This financial assistance was critical in ensuring that people had disposable income to spend, facilitating economic activity even in challenging times.
Additionally, funds provided to businesses affected by the pandemic, ranging from €25,000 to €1.5 million, coupled with a minimum interest rate of 4%, significantly supported the labour force against the adverse effects caused by the pandemic.
Step 5
Legislation and Minimum Wage
Answer
Finally, the government has the power to legislate regarding minimum wage laws. By establishing a minimum wage, the government can ensure a basic standard of living for all workers. This, in turn, enables lower-income families to have a better quality of life and contributes positively to overall consumer spending, reinforcing the economy and employment ecosystem.