Dara Calleary
Question:408. Deputy Dara Calleary asked the Minister for Social Protection the strategies she has in place to reduce youth unemployment; and if she will make a statement on the matter. [52078/12]
View answerTuesday, 29 January 2013
Questions (408, 412, 413, 414, 423, 426)
Dara Calleary
Question:412. Deputy Dara Calleary asked the Minister for Social Protection the targets that are in place regarding reducing youth unemployment; and if she will make a statement on the matter. [51858/12]
View answerDara Calleary
Question:413. Deputy Dara Calleary asked the Minister for Social Protection the action she is taking to tackle youth unemployment; and if she will make a statement on the matter. [51843/12]
View answerDara Calleary
Question:414. Deputy Dara Calleary asked the Minister for Social Protection the measures she is putting in place to reduce youth unemployment; and if she will make a statement on the matter. [51864/12]
View answer
Peadar Tóibín
Question:423. Deputy Peadar Tóibín asked the Minister for Social Protection the steps taken by her to redress youth unemployment and her assessment of the impact of these steps. [3232/13]
View answerPeadar Tóibín
Question:426. Deputy Peadar Tóibín asked the Minister for Social Protection the current levels of youth unemployment and the steps taken to address this matter. [51881/12]
View answerWritten answers
I propose to take Questions Nos. 408, 412 to 414, inclusive, 423 and 426 together.
Young people, typically, suffer disproportionately from job losses in recessions as they tend to have entered employment more recently, are more likely to hold temporary contracts and to be employed in cyclically sensitive industries than older workers. There were 71,000 young unemployed, on average, in the first nine months of 2012, made up of 20,000 aged 15-19 and 51,000 aged 20-24. Overall, the under-25 age group had an unemployment rate of 31% (41% for 15-19 year-olds and 29% for 20-24 year-olds). This compares to an unemployment rate of 13.8% for prime age workers (ages 25–54). Of particular concern is the continued increase in the share of youth unemployed who are out of work for more than one year. They now account for 41% of all youth unemployment.
In the first instance, the Government’s primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. Past experience suggests that youth unemployment, which tends to rise relatively rapidly in a downturn, can be expected to fall relatively rapidly during the recovery. In addition to promoting economic recovery, the Government recognises the need for interim measures to support the young unemployed and keep young jobseekers close to the labour market. There are five main approaches being taken to tackle youth unemployment: education, training, job search assistance/guidance, work experience, and encouraging job creation. These actions range across a number of Departments and Agencies.
In terms of education, the Youthreach programme provides integrated education, training and work experience for unemployed early school leavers without any qualifications or vocational training who are between 15 and 20 years of age. There are almost 6,000 places available nationwide under the Youthreach umbrella.
The Vocational Training Opportunities Scheme (VTOS) scheme, operated through VECs, provides a range of courses to meet the education and training needs of unemployed people over 21 years of age (particularly early school leavers). The most recent data indicate that there are almost 1,000 participants on VTOS who are under 25 years of age.
The Back to Education Allowance scheme run by my Department provides income maintenance, along with a contribution to education costs, for unemployed people returning to further or higher education. Over 6,500 young people participated in the BTEA in the last academic year.
Approximately 12,000 persons aged under 25 completed a training course with FÁS in 2012 (excluding apprenticeships and evening courses). Training allowances on eligible courses exceed what a young person would receive in jobseekers’ payments, providing an incentive to take up training programmes.
In addition, in 2013 MOMENTUM, a scheme for education and training interventions, is part of the Government’s Action Plan for Jobs initiative and is currently being rolled out by the Department of Education. MOMENTUM will support the provision of free education and training projects to allow 6,500 jobseekers (who are unemployed for 12 months or more) to gain skills and to access work opportunities in identified growing sectors. MOMENTUM will provide eligible jobseekers with
- Access to a range of quality education and training projects
- Links to identified job vacancies and employers
- Work placement and support
- Relevant industry and National Framework of Qualifications (NFQ ) Certification.
Under the scheme, Labour Market Education and Training Fund (LMETF) funding is being utilised to provide education and training solutions nationwide to the needs of both unemployed individuals and employers within the context of four themes. The first three themes are based on 'clusters of occupations'. These have been chosen because there is evidence available which shows that these skills are associated with relatively good employment opportunities. Theme 4 is dedicated to under 25s and will provide a solid foundation for them to gain employment and/or continue in further education and training that will progress them into employment.
In terms of job search assistance, some 25,500 young people registered with Employment Services in 2012, representing 36% of all registrants. Registering with Employment Services gives job-seekers access to guidance interviews, job search assistance, and training courses, as well as self-service job-seeking options.
Under the National Employment Action Plan (EAP) persons between the ages of 18 and 65 years who are approaching 3 months on the Live Register are identified by the Department of Social Protection and referred to Employment Services for interview with the aim of assisting them to enter/re-enter the labour market. In 2012, there were some 33,000 referrals of under 25s to the EAP, affecting approximately 26,000 individual jobseekers (those who do not attend initially are referred again). Of those referred, 68% of clients had signed off the Live Register by the end of the year. The EAP process is being changed on a progressive basis across the country to one where referral will take place immediately on becoming unemployed for those identified, through profiling, as being at greatest risk of remaining unemployed for long periods.
There are a number of schemes/programmes available that are focussed on work experience. The most relevant for young people are JobBridge (the National Internship Scheme), and its predecessor the Work Placement Programme. Over 1,500 young people are currently participating on these schemes. The total number of placements of young people on JobBridge during 2012 was 2,700.
The findings of the interim evaluation of JobBridge, The National Internship Scheme by Indecon International Economic Consultants (published – 5th October 2012) found that 61% of finishers secured employment within five months of completing their internship. These progression rates compare favourably with European averages in this area and represent very significant progress in a short period of time. It is expected that the progression outcomes in respect of those ‘under 25’ would be broadly in line with the 61% figure.
A further breakdown of progression into employment by age category will be provided in the final Evaluation Report. In addition to the above this evaluation will assess the design, delivery and impact of the JobBridge Scheme and present recommendations on how the Scheme might be improved. It is at this stage that further consideration will be given to amending the terms and conditions of the Scheme.
Young people will also continue to benefit from the reduced rate of employer’s PRSI, the purpose of which is to support job creation, as well as from the impact of Revenue Job Assist and the Employers PRSI Incentive Scheme.
In terms of targets for reducing youth unemployment, the Pathways to Work initiative has specific targets for increasing the number of people who are long-term unemployed moving into employment and reducing the average length of time spent on the Live Register. As two out of five young unemployed are long-term unemployed, these targets are pertinent to young people.
Finally the European Commission has proposed a European-wide approach to a “youth guarantee” that is currently being discussed during Ireland's Presidency of the EU Council. The Commission’s proposals were published in December, and achieving political agreement on these proposals in the Council will be a major objective of Ireland’s Presidency in the first half of 2013.