2014-04-22 - Socio Economic Review 2014 - Full text and cover - FINAL

enterprises, farming and fishing. The areas that are highlighted as possible drivers
of rural job creation are social enterprise and social services (e.g. child care and elder
care), tourism, ‘green’ products and services and cultural and creative industries. In
order to promote development of these drivers of employment and to support local
entrepreneurs and local enterprises in rural and coastal areas the economic policies
for these areas must take into account specific local needs such as accessible
transport and access to childcare.
The economies of rural areas have become increasingly dependent on welfare
transfers, with the ‘at risk of poverty’ rate in rural areas being 4.6 percentage points
higher than that of urban areas. In 2011 the ‘at risk of poverty’ rate in rural areas was
18.8 per cent and 14.2 per cent in urban areas. The economic recession and
restructuring of agriculture and subsequent decline in off-farm employment has led
to a narrowing of the economic base in rural areas. Small and medium sized towns
have seen unemployment increase by 193 per cent during the recession and the share
of working age households with no one in work is 20 per cent higher than the national
average at 31 per cent 95 . Low-paid, part-time and seasonal work and long-term
underemployment are also significant factors in rural poverty and exclusion (Walsh
& Harvey (2013). The problem of underemployment is further highlighted by the
recent assessment of the Rural Social Scheme (RSS) by the Department of Public
Expenditure and Reform. It found that 60 per cent of participants have been on the
scheme for more than six years, and 82 per cent for more than three years. The
majority of participants are male and over 70 per cent of these are aged fifty and over.
The RSS was designed as an income support scheme for people in rural occupations,
not as an employment activation scheme. The assessment acknowledges that the RSS
was established to support people who were underemployed in their primary activity.
However in light of Government’s new labour market activation policies whereby
income supports must be integrated with activation measures the RSS is under
increasing scrutiny. The assessment concludes that the RSS is not having a meaningful
impact in terms of moving people into sustainable employment and that the social
cohesion objective of the RSS needs to be set against broader high level policy
objectives. What this assessment does not consider is the lack of sustainable and
appropriate employment in rural areas, nor does it appropriately measure the social
value of such a scheme in terms of combating social exclusion and isolation.
Government does not have an explicit strategy to generate sustainable employment
creation in rural areas and appears to have dropped a commitment on targeting
investment outside of Ireland’s two major urban areas. The Action Plan for Jobs 2012
contained a target of 50 per cent of Foreign Direct Investment to be outside of the
Dublin and Cork regions. This target is not contained in the Action Plan for Jobs 2013.
To ensure policy coherence, no changes should be made to the RSS without a
corresponding commitment from Government to develop and deliver a strategy to
promote sustainable employment creation in rural areas.
95
http://www.teagasc.ie/news/2014/201402-24.asp
12. Rural Development 237