Ireland unveils €250 million jobs subsidy scheme

The Irish government unveiled last Thursday a €250 million employment subsidy aimed at protecting up to 27,400 "vulnerable" jobs in the recession-wracked eurozone member.

"Many of our exporting firms are experiencing great challenges in the current economic environment and the government believes that unless additional innovative forms of support are provided, more jobs may be lost," said Deputy Prime Minister Mary Coughlan.

"Not only will the scheme support the maintenance of vulnerable jobs, but it will help our economy retain its productive capacity and assist employers retain their labour, knowledge and skills-base, thereby supporting a faster return to sustainable growth."

Ireland's unemployment rate surged to 11.9 per cent in June, the highest level since April 1996, as the eurozone nation was hammered by recession.

Prime Minister Brian Cowen told parliament projections were that the unemployment rate was expected to be in the region of 15 to 15.5 per cent by the end of the year.

The new scheme will provide a subsidy of €9,100 per employee over 15 months to qualifying exporting companies in the manufacturing and internationally traded services.

Ireland has been severely battered by the international financial crisis. It entered recession during the first half of 2008 - the first eurozone nation to do so.