Dáil Éireann Debate, Tuesday - 6 July 2021
363. Deputy Steven Matthews asked the Minister for Social Protection if her Department is considering additional measures or initiatives to help address the extremely high rate of youth unemployment; and if she will make a statement on the matter. [36293/21]
View answerThe 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" approach 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, the hospitality (accommodation & food) and retail sectors.
Prior to the pandemic, the seasonally adjusted youth unemployment rate (15-24 year olds) stood at just under 12% 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 for young people at the end of June.
A significant number of PUP recipients are students. As of this week (July 6th 2021), it is estimated that approximately 22,000 PUP recipients are students, with the vast majority 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.
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. The 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 will be launched later this month, 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 open to all regardless of age.
I trust this clarifies the matter for the Deputy.
