We know from past recessions that young people tend to be disproportionately impacted by any labour market shock. This is because many employers operate a "last in-first out" protocol when reducing their labour force and also because young people tend to work in occupations and sectors, such as retail and hospitality, that are most immediately affected by economic downturns. As research published recently by my Department shows, the impact of the Covid-19 pandemic has been no different.
Youth unemployment stood at just over 10% in Q1 2020 based on the Labour Force Survey data, with approximately 20,000 persons aged under 25 on the Live Register. By Q3 2020 these figures had increased to 20% and 25,000 respectively.
By end October, if PUP recipients are included in the figures, over 45% of young people in the labour force were unemployed. However, it is important to note that the Government extended access to PUP to students who worked part-time. As a consequence one in four of those in receipt of PUP, and under 25, have self-certified as students. Using internationally recognised standards set by the International Labour Organisation, these students would not normally be considered, or counted, as unemployed.
While young people are disproportionately affected we also know from past recessions that youth unemployment levels typically fall quite quickly once economic activity resumes.
The evidence also shows, however, that some young people will remain disconnected from employment and that those who cannot re-find their footing tend to suffer permanent scarring effects with unemployment and social isolation becoming entrenched.
That is why it is critically important that we act quickly and decisively to engage with young people who do not return to either employment or education, to create opportunities and options for them, to promote these options and to work with them to help them take up these options. As part of this approach it is also critically important to work with employers to encourage them to make opportunities available to young people who might not have the social and family networks that can sometimes be necessary to take that first step into employment.
That is why my Department, and the Department of Further and Higher Education, Research, Innovation and Science, are developing a range of support measures to assist persons, including young persons, on their journey to work. Measures announced under the July Jobs Stimulus to combat unemployment and youth unemployment, include:
- Expanding the capacity of Intreo Centres to provide enhanced employment services and supports with the assignment of 100 Job Coaches.
- Expanding the benefit of the JobsPlus recruitment subsidy to employers who hire young people from the Live Register.
- Providing 35,000 new places in further and higher education courses.
- Providing incentives to employers to take on more apprentices, with the provision of a grant of €3,000 to employers for each new apprentice recruited.
- Facilitating access to the Back to Education Allowance and Back to Work Enterprise Allowance to those displaced by the pandemic by waiving the usual qualifying period.
My Department is also developing a new work experience placement programme for those out of work for at least six months to encourage employers to provide jobseekers with the necessary workplace skills to compete in the labour market - to help break the vicious circle of 'no job without experience, no experience without a job'. I expect to launch the Programme in early 2021, subject to public health restrictions.
In developing these programmes and services the Department is working closely with, and being advised by, the Labour Market Advisory Council which is composed of leading market experts, representatives of industry and workers and representatives of unemployed people. We will keep these programmes under review and report progress on a regular basis.
