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Youth Unemployment

Dáil Éireann Debate, Tuesday - 18 May 2021

Tuesday, 18 May 2021

Questions (103)

Paul Murphy

Question:

103. Deputy Paul Murphy asked the Minister for Social Protection her plans for youth unemployment; and if a commitment will be given not to introduce JobBridge-style activation schemes targeted at young persons. [26227/21]

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Written answers

As the Deputy will be aware, the experience of past recessions indicates that youth employment tends to be significantly impacted by any labour market shock.  This is because many employers operate a "last in-first out" protocol when reducing their labour force.  Moreover, in the case of the COVID-19 pandemic, the impact on our youth is driven by the tendency for many younger people to work in some of the sectors most severely impacted by the pandemic; namely accommodation and food and retail.

Prior to the pandemic, seasonally adjusted youth unemployment (15-24 year olds) stood at just under 12% in December 2019.  Latest estimates from the CSO however, show that by the end of April 2021, this figure had increased to almost 16.8%.  These estimates exclude those in receipt of the Pandemic Unemployment Payment (PUP).  Including all those in receipt of the PUP gives a COVID-19 adjusted unemployment rate estimate 61.8% for young people at the end of April.

A significant number of PUP recipients are students.  As of this week, it is estimated that approximately 44,000 PUP recipients are students, with almost 90 percent of these in the under 25 cohort.  Using international measures of unemployment, set by the International Labour Organisation, students are generally not counted as unemployed, as they are not considered part of the labour force.  Therefore, the inclusion of recipients of PUP, including students in the COVID-19 Adjusted Measure of youth unemployment inflates this measure.

While the employment of young people is significantly affected by the pandemic, we also know from past recessions that youth unemployment levels typically fall quite quickly once economic activity resumes.  In addition, the jobs of many persons currently on PUP will not be permanently lost due to the pandemic.  Many will return to previous employment once restrictions ease, as they did during previous easing of restrictions during 2020. 

However, others will require assistance and support to return to employment, reskill and to find new jobs.  Therefore it is important that my Department supports a range of initiatives to assist people, including young people, get back to work, as COVID-19 restrictions and their impact on the economy and labour market eases.

Under the July Jobs Stimulus, my Department, along with the Department of Further and Higher Education, Research, Innovation and Science, are putting in place the following measures:

Expanding the caseload capacity of Intreo Centres, with the assignment of 100 job coaches to provide enhanced employment services and supports.

Increasing the benefit of the JobsPlus recruitment subsidy to employers who hire young people. Under this scheme an employer receives the JobsPlus subsidy of €7,500 once they employ a young person (under 30 years of age) who has been unemployed for just 4 months.  A higher subsidy of €10,000 is paid for recruitment of a person who was long term unemployed (over 12 months).

Providing access to additional full-time and part-time education, including targeted short-term courses, with over 35,000 new education and training places for those currently unemployed.

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 and in receipt of PUP, by waiving the usual qualifying period of 3-9 months.

With regard to apprenticeships, the Action Plan for Apprenticeship 2021-2025 was launched last month by my colleague, Minister Harris.  The Action Plan sets out a five-year strategy to deliver on the Programme for Government commitment of reaching 10,000 new apprentice registrations per year by 2025.  The plan provides a roadmap to a single apprenticeship system and new supports for employers and apprentices, which will prove attractive for many young people.

My Department is at an advanced stage in developing a new Work Placement Experience Programme for those out of work for at least six months, regardless of age.

This programme will seek to encourage businesses provide jobseekers with the necessary workplace skills to compete in the labour market and to help break the vicious circle of “no job without experience, no experience without a job”.  I expect to launch the Programme in the near future.

These initiatives will be further strengthened by Pathways to Work 2021-2025, which is currently being finalised by my Department.  Pathways to Work is the Government’s national employment services strategy.  It will set out how an expanded Public Employment Service will utilise its existing and expanded capacity to deliver effective services in a post-COVID labour market.  This whole-of-Government strategy will seek to build upon those support measures outlined above as we assist young people on their journey to work.  Publication is expected in the coming months, following the launch of the Government's Economic Recovery Plan.

I trust this clarifies matters for the Deputy. 

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