Labour market reforms will generate 20,000 jobs, says think-tank

The government’s macro-economic think-tank CPB expects planned reforms to the labour market to generate an extra 20,000 jobs, website said on Friday.

The government’s senior advisory body, the Council of State, is highly critical of the draft legislation which was sent to parliament on Friday, said.

The legislation covers reducing entitlement to jobless benefit (ww), making it easier for companies to sack staff, and giving more rights to workers on flexible contracts.

Two years

The ww reforms include slashing the period of entitlement from a maximum three to a maximum two years. The unemployed will also have to accept a job beneath their current level after six months.

However, the CPB said the effect of the changes on boosting unemployment would be stiffled if unions and employers make agreements about a voluntary extension to three years in sector-wide pay and conditions deals.

The Council of State has also warned that the proposal to force employers to give permanent contracts to people who have already had two short-term contracts will be counter-productive.

The reforms also place a €75,000 ceiling on golden handshakes.

The government hopes the entire package will cut treasury spending by €1.1bn.

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