Dáil Éireann Debate, Thursday - 1 July 2021
308. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she and her Department have continued to monitor youth unemployment levels; the extent to which such levels have increased or otherwise in recent weeks; and if she will make a statement on the matter. [35715/21]
View answerMy Department has been closely and regularly monitoring the impacts of the pandemic on the labour market, including its impacts on youth unemployment levels. Research from my Department has shown that young persons make up a significant share of the workers in those sectors most impacted by the pandemic and associated public health restrictions, namely hospitality (accommodation & food) and retail, which has contributed to a rise in the youth unemployment rate since the onset of the pandemic.
Prior to the pandemic, the seasonally adjusted youth unemployment rate (15-24 year olds) stood at just under 12 percent in December 2019. Latest estimates from the CSO, however, indicate that the traditional unemployment rate for young persons stood at 19.9 percent for young people in June. This estimate excludes those in receipt of the Pandemic Unemployment Payment (PUP). When all those in receipt of the PUP are included, this gives a COVID-19 adjusted unemployment rate estimate of 44.2 percent. This represents a substantial decline from the COVID-19 adjusted unemployment rate of 58.8 percent for young people at the end of May.
In addition, a significant number of PUP recipients are students. As of this week (June 29th 2021), it is estimated that just under 24,000 PUP recipients are students, with 86 percent (20,350) of these under the age of 25. Using international measures of unemployment, set by the International Labour Organisation (ILO), students are generally not counted as unemployed, as they are not considered part of the labour force. Therefore, the inclusion of PUP recipients, including students, in the COVID-19 adjusted measure of youth unemployment serves to inflate this measure.
For these reasons, it is at present not possible to say what the precise level of youth unemployment is.
While the employment of young people has been significantly affected by the pandemic, we also know from past recessions that they are also the most resilient, with youth unemployment levels typically falling quite quickly once economic activity resumes. Many have already returned to work, and others will continue to return to their previous employment, as public health restrictions continue to ease. This is reflected in the significant decline in the number of people in receipt of the PUP, including among young persons.
Between the 1st and 29th of June, PUP claims by young persons under the age of 25 declined by close to 35 percent as the economic recovery progressed. This compares to an overall decline of 26 percent for people of all ages in receipt of PUP claims in June. In the past week alone, between the 22nd and 29th of June, the number of PUP claims by young people has fallen by more than 6,000 cases.
I expect to see continued returns to work, including among young persons, as our economy and society continues to reopen. However, we must also be aware that some jobs will be permanently lost as a result of the pandemic. Therefore, Government is supporting a range of initiatives to assist people back to work; as outlined under the Economic Recovery Plan launched on June 1st. They key delivery mechanism to the Plan’s second pillar on ‘Helping People Back into Work’ will be my Department’s forthcoming national employment services strategy, ‘Pathways to Work 2021-2025’. This strategy, which is currently being finalised for launch in the coming weeks, will seek to support people back into employment and will include a range of measures targeted at young persons; including an expanded JobsPlus recruitment subsidy scheme, an additional 50,000 education and training places, a new Government Youth Employment Charter and a new work placement scheme which is open to all regardless of age.
