Niamh Smyth
Question:1157. Deputy Niamh Smyth asked the Minister for Social Protection the present youth unemployment rates; the plans in place to tackle youth unemployment; and if she will make a statement on the matter. [40735/21]
View answerTuesday, 27 July 2021
Questions (1157)
Written answers
In December 2019, just prior to the pandemic, the seasonally adjusted youth unemployment rate (15-24-year olds) stood at just under 12 percent. Latest estimates from the CSO indicate that the traditional unemployment rate for young persons is 19.9 percent. This estimate excludes those in receipt of the Pandemic Unemployment Payment (PUP). When those in receipt of the PUP are included, the COVID-19 adjusted unemployment rate estimate is 44.2 percent for young people at the end of June.
A significant number of PUP recipients are students. As of last week (July 20th, 2021), it is estimated that approximately 19,000 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 inflates this measure somewhat.
We also know from past recessions that youth unemployment levels start to reduce quite quickly once economic activity resumes. This is also evident from trends in youth unemployment since public health restrictions began to be lifted, from early May. Since that time the number of young people under the age of 25 receiving PUP has fallen by almost 56 percent. This compares to an average decline of close to 44 percent across all other age groups over the same period.
I expect to see continued numbers of persons, including young people, returning to work, 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 Pathways to Work 2021-2025 strategy which I launched on July 12th. This strategy seeks to support people back into employment and to minimise any long-term scarring effects which may arise due to the periods of economic inactivity as a consequence of the pandemic. It includes a range of measures targeted at young people such as:
- The newly launched Work Placement Experience Programme, which is a 6-month, 30 hour per week voluntary work experience programme, for persons out of work for six months or more and has 4,000 places ring-fenced for young people.
- Expanding the JobsPlus scheme to 8,000 places and enhancing the incentive to recruit young jobseekers in particular, by increasing the youth age limit from 25 to 30 years.
- A new Government Youth Employment Charter for intensive engagement with young jobseekers which will build on the new EU Reinforced Youth Guarantee.
- Ring-fencing at least 1,000 out of the 3,000 additional Community Employment and Tús places for long term unemployed young people.
My Department also works closely with the Further Education and Training sector to provide access to training, upskilling and reskilling opportunities that are of particular relevance to young people entering the labour market for the first time. As part of Pathways to Work 2021-2025, the Department of Further and Higher Education, Research, Innovation and Science are providing an additional 50,000 further education and training places to help more people, including young persons, to have the opportunity to upskill and reskill. In addition, the Apprenticeship Incentivisation Scheme has been extended until the end of December 2021. This scheme provides financial supports for employers who register apprentices to a national apprenticeship scheme.
Using these measures, Pathways to Work 2021-2025 aims to reduce the youth unemployment rate back to or below the 2019 average of 12.5% by 2023.
I trust this clarifies the matter for the Deputy.
Question No. 1158 answered with Question No. 1104.