Employers body IBEC has said radical and decisive steps are needed to tackle unemployment. The group has made a submission to the Government ahead of the publication this month of its jobs initiative.
The submission calls for reform of State services, changes to wage rules and a loan scheme for small business.
IBEC has called for big reform of State employment services and the social welfare system to ensure they work together to get people back to work. The group said the Government should set up a national graduate internship programme and a work placement programme for the unemployed.
It has also called for new third level courses to help move those with construction-related skills into other areas of employment.
IBEC also said a substantial loan guarantee scheme for small and medium enterprises should be introduced and it called for a big overhaul of the wage rules that set minimum terms and conditions in many sectors.
It said there should be no further reduction of the public capital investment programme and a renewed focus on public private partnerships.
IBEC Director General Danny McCoy said Ireland had been in crisis management mode for too long and positive steps were needed to get the economy back on track.
He said business would provide job opportunities if the Government ensured the conditions were right.
Meanwhile, Finance Minister Michael Noonan has told the Dail that the Government's upcoming jobs initiative will be morale boosting and confidence building as opposed to a 'huge spend'.
Michael Noonan said resources are not there for a huge investment and said the document will be fiscally neutral.
The Minister was responding to questions from Fianna Fail's Michael McGrath who asked if the initiative would be met by spending cuts, tax increased or a combination of both.
