Dáil Éireann Debate, Wednesday - 24 April 2013
154. Deputy Bernard J. Durkan asked the Minister for Social Protection the specific arrangements she has put in place to address the issue of youth unemployment; and if she will make a statement on the matter. [19401/13]
View answerYoung 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 68,000 young unemployed, on average, in 2012, made up of 18,500 aged 15-19 and 49,500 aged 20-24. Overall, the under-25 age group had an unemployment rate of 30% (40% for 15-19 year-olds and 28% for 20-24 year-olds). This compares to an unemployment rate of 13.5% 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 almost half of all unemployed youth (47%). In this context, it is a welcome development that the most recent official labour market figures indicated that the number of young unemployed at the end of 2012, at 59,000, showed a reduction of almost 9,000 on the same time a year earlier. It is to be hoped that this is the beginning of a sustained downward movement in youth unemployment as the economy recovers.
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 Back to Education Allowance (BTEA) scheme run by my Department provides income maintenance for unemployed people returning to further or higher education. Over 6,500 young people participated in the BTEA in the last academic year. MOMENTUM, a new Department of Education and Skills initiative, launched in 2013, has a specific youth component. 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 consists of four themes, of which theme 4 is dedicated to under 25s.
In terms of training, 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. Training courses relevant to the individual job-seeker’s needs are available to all young unemployed.
In terms of job-search assistance, some 25,500 young people registered with Employment Services in 2012, representing 36% of all new 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 referral process is currently being replaced, under Intreo, by referral of all unemployed persons to group engagement sessions immediately on entering the Live Register, followed by immediate one-to-one interviews for those profiled as most likely to remain unemployed for longer periods.
There are a number of schemes/programmes available that are focussed on work experience. The most relevant for young people is JobBridge (the National Internship Scheme). 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.
In the December Budget, funding was secured for an additional 10,000 places this year across a range of programmes -- including JobBridge, TÚS and Community Employment. About a quarter of these places will be earmarked to be taken up by unemployed young people.
Long-term unemployed youth will benefit from the JobsPlus initiative which is designed to encourage employers to recruit long-term unemployed people. Under this scheme the State will pay circa €1 of every €4 it costs the employer to recruit a person off the Live Register. Given that young people normally benefit most when employers start hiring, they are likely to be particular beneficiaries of this initiative.
Finally the European Commission has proposed a Council Recommendation on a European-wide approach to a “youth guarantee. The Council Recommendation -- which received political agreement from EU employment ministers in February and is expected to be formally adopted this month -- recommends that each Member State should ensure that young people receive a quality offer of employment or of continued education, an apprenticeship or traineeship within four months of becoming unemployed.
While Member States are encouraged to implement the Recommendation as soon as possible, it is recognised that implementation will need to be more gradual in countries with higher levels of youth unemployment and particularly severe budgetary problems. The government will review the current range of youth employment and training policies in Ireland to assess what measures will need to be taken to commence the gradual implementation of the guarantee. This will include the identification of what would be the appropriate timescale for implementation in Ireland's current employment and budgetary circumstances.
