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Youth Unemployment Measures

Dáil Éireann Debate, Wednesday - 16 April 2014

Wednesday, 16 April 2014

Questions (92, 93, 94, 95, 100, 101)

Bernard Durkan

Question:

92. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which proposals to target youth unemployment are so far in place and effective; and if she will make a statement on the matter. [18240/14]

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Bernard Durkan

Question:

93. Deputy Bernard J. Durkan asked the Minister for Social Protection the degree to which the long-term unemployed are likely to benefit from unemployment alleviation measures currently in course or proposed; and if she will make a statement on the matter. [18241/14]

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Bernard Durkan

Question:

94. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she expects to be in a position to bring about a further reduction in numbers of the long-term unemployed in 2014; and if she will make a statement on the matter. [18242/14]

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Bernard Durkan

Question:

95. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of youth unemployed she expects to be facilitated by way of specific measures; and if she will make a statement on the matter. [18243/14]

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Bernard Durkan

Question:

100. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which EU support for the long-term and youth unemployed is available in 2014; and if she will make a statement on the matter. [18248/14]

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Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which the age profile of those on the live register has been recorded, categorised and listed for specific alleviation measures; and if she will make a statement on the matter. [18249/14]

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Written answers

I propose to take Questions Nos. 92 to 95, inclusive, 100 and 101 together.

In the first instance, the Government’s primary strategy to reduce unemployment (including long-term and youth unemployment) is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. This strategy is working. Employment rose by 61,000 during 2013, which represents a year-on-year increase of 3.3%. The unemployment rate has fallen to 11.8% – the lowest rate in 5 years – and is down from a peak of just over 15% in 2011.

Long-term unemployment has fallen from 196,000 at the end of 2011 to 155,000 at the end of 2013, a decline of over 40,000 in less than two years. As a result the long-term unemployment rate had fallen to 7.2% down from a peak of over 9%. Similarly, youth unemployment has also fallen, from 67,700 at the end of 2011 to 48,800 at the end of 2013. As a result the youth unemployment rate had fallen to 24% down from a peak of 33%.

Nevertheless, despite the progress that has been made, the Government recognises that both youth unemployment and long-term unemployment remain unacceptably high. Hence, the Government also recognises the need for additional activation measures in the interim while the economy recovers. This is the rationale behind the Government’s Pathways to Work strategy and the Youth Guarantee, both of which are being led by my Department.

Pathways set a target (among others) of moving 75,000 of the 180,800 people, who were on the Live Register for over a year (long-term unemployed) at the beginning of 2012, into employment by the end of 2015. By the end of February this year, over 45,000 of this group had already moved into employment, 13,000 of whom had taken up part-time employment.

Pathways to Work includes a wide range of programmes and services to help jobseekers back to employment. Below is a table which sets out the level of provision on programmes for 2014, indicating also which programmes are particularly targeted at the long-term unemployed. These include programmes such as JobBridge, JobsPlus and Momentum introduced by this Government and schemes such as Community Employment and TÚS where we have significantly increased the number of places available.

In summary, Pathways to Work sets out a strategy for the full rollout of a radically reformed public employment service by 2015. The Government is currently on target to meet this goal.

The Government’s approach to tackling the unemployment problem is to focus resources on those individuals most at risk of long-term unemployment.

The Department of Social Protection keeps a detailed breakdown of the profiles of jobseekers. Data on each client’s age, past occupation, and his/her education, is collected at the point of registration for job-seekers’ payment; these and other relevant data are processed and the probability of exiting the live register is calculated (PEX). This is essentially a predictor of whether or not someone will become long-term unemployed. The roll-out of the profiling system at the Department’s ‘one-stop-shop’ Intreo offices implicitly involves age profiling of the long-term unemployed, as age is one of the main determining variables in predicting if someone will become long-term unemployed. As a result, if someone is in an age category that is more likely to experience long-term unemployment, s/he will, all other things being equal, receive more targeted assistance.

Summary statistical information on the clients’ age, duration of unemployment, and last held occupation together with other demographic and regional information is published on the Central Statistics Office website.

In addition, the Youth Guarantee initiative is specifically aimed at those under 25 who are unemployed with specific targeting of those who are either long-term unemployed or are most at risk of becoming long-term unemployed. The implementation of the Guarantee is a medium-term policy of the Irish Government. The guarantee of an offer of training, education or work experience for those aged 18-24 years after a four month period should be implemented on a phased basis.

Starting in 2014, and for completion by the end of 2014, processes and programmes will be progressively rolled out to ensure that all of those young unemployed people who need most support (i.e. are assessed as having a low probability of securing employment in the absence of support from the Public Employment Services) will receive a Youth Guarantee offer within four months.

During 2014 – 2015 all long-term unemployed young people under 25 will be engaged by the Public Employment Service and will receive a Youth Guarantee offer if still unemployed after four months of this engagement process commencing.

A breakdown of likely activation places available for 2014 is presented in the table. The programmes where being long-term unemployed is an eligibility requirement are indicated, as well the expected inflow of young people.

The cost of the Youth Guarantee will be funded, in the first instance, by the Irish Exchequer. However, it is expected that a number of these programmes will meet ESF eligibility criteria and will be included in the Youth Employment Initiative application for Ireland. This should permit EU funding to be drawn down in respect of expenditure in 2014 and 2015 to a level that should enable the full YEI allocation for Ireland of €68.1 million in current prices (with a further similar amount in ESF funding) to be taken up over those two years.

Expected participation, activation programmes, 2014

Programme

Average participation

Expected inflow of young people

Inflow of new participants (all ages)

Aimed at Long Term Unemployed ?

Youthreach/CTC

6,000

3,300

3,300

-

JobBridge (including planned reserve)

7,700

5,000

13,300

-

Tus

7,500

1,000

7,500

Yes

JobsPlus

4,000

1,500

2,000

Yes

Momentum

6,500

2,000

6,500

Yes

BTEA (excl Momentum)

18,500

3,300

9,300

-

BTWEA

11,000

200

5,500

Yes

VTOS

5,600

500

2,800

-

FAS/Solas

10,300

9,500

25,000

40% target

CEB youth Entrepreneurship Training and Mentoring supports

-

700

700

-

CEB/MFI micro-loans for young people

-

150

150

-

International Work Experience and Training

250

250

250

-

Gateway

3,000

450

3,000

Yes

Community Employment

25,300

500

12,700

Yes

Total

105,650

28,350

92,000

-

PLCs

Apprenticeship

35,000

8,000

22,000

2,000

32,000

2,500

-

Vocational Third Level

It is estimated that at least 50% of the 41,000 entrants to third level each year are entering courses leading towards defined occupations

-

-

-

The cost of the Youth Guarantee will be funded, in the first instance, by the Irish Exchequer. However, it is expected that a number of these programmes will meet ESF eligibility criteria and will be included in the Youth Employment Initiative application for Ireland. This should permit EU funding to be drawn down in respect of expenditure in 2014 and 2015 to a level that should enable the full YEI allocation for Ireland of €68.1 million in current prices (with a further similar amount in ESF funding) to be taken up over those two years.

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