Dáil Éireann Debate, Tuesday - 19 June 2018
68. Deputy Thomas P. Broughan asked the Minister for Employment Affairs and Social Protection the measures she is taking to address the youth unemployment rate of 11.9%; if the rate of jobseeker's payments for persons of 26 years of age will be equalised in budget 2019; and if she will make a statement on the matter. [26512/18]
Amharc ar fhreagraGovernment policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs; and second, through Pathways to Work, to ensure that as many as possible of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, including young people. Reflecting the impact of government policy, and the overall improvement in the labour market, youth unemployment continues to fall with a rate of 11.9% (32,300 persons) in May 2018 estimated by CSO, down from a peak rate of almost 32% in 2012. The youth unemployment rate now lies significantly below the EU-28 average rate of 16.1%. The actual number of young people unemployed is estimated to have peaked at 97,800 persons in late 2010. Youth unemployment figures can be expected to fall further this year in line with the continuing forecast fall in overall unemployment.
In early 2018, youth unemployment is already below the 12% target level set in Pathways to Work for 2020. Additionally, Eurostat figures indicate that the number of young people in full-time employment has grown from 197,000 in mid-2012 to 238,000 by Q4 2017.
These trends indicate that together with improvements in the labour market and economic recovery, our approach to youth employment, which focuses in the first instance on enhancing processes and policies for assisting young unemployed people to find and secure sustainable jobs, has been relatively successful.
Under the Government’s policies to support the young unemployed, the first intervention is to provide case officer support to help newly unemployed young people find and secure sustainable jobs. There is monthly engagement with all young jobseekers by a case officer, and a Personal Progression Plan is developed to chart the steps to be taken to facilitate a return to employment, which may include further education and training or other opportunities.
For those who do not find employment, through the process just described, additional offers are provided for. Most such offers (over 70%) are in existing further education or training programmes. Others are in existing community-based employment programmes/workplace based interventions such as CE, Gateway and Tús and First Steps; or in subsidies to employers, through JobsPlus Youth. Long-term unemployed jobseekers under-25 are also referred to JobPath, a contracted, payment-by-results employment services that provides additional resources and supports to those long-term unemployed.
The strategy document Pathways to Work 2016 to 2020 includes some additional actions in relation to addressing youth unemployment:
1) increase the relative share of workplace-based interventions (Gateway, TÚS, Positive to Work) for youth unemployed;
2) ensure the frequency of engagement with all young unemployed people is a minimum of one case officer meeting per month;
3) restructure the First Steps programme for young unemployed people to improve take-up by offering a higher level of support to jobseekers and employers;
4) implement the Defence Forces Skills for Life employment support programme.
Each of these actions is either ongoing or has been completed.
I will shortly be introducing a new work experience programme targeted specifically at young jobseekers who are long-term unemployed or who face significant barriers to gaining employment. The new Youth Employment Support Scheme (YESS) will provide them with the opportunity to learn basic work and social skills in a supportive environment while on a work placement. Operational details are currently being finalised.
In line with other EU and OECD jurisdictions where such measures feature, reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009 and extended to those under 26 in Budget 2014. These measures were introduced to protect young people from welfare dependency by providing young jobseekers with a strong financial incentive to engage in education or training or to take up employment.
Where a young jobseeker participates on an education or training programme they receive a higher weekly payment of €198 which is the maximum personal rate for jobseeker’s allowance. In addition, recipients of jobseeker’s allowance under 26 years of age who have dependent children are not subject to the reduced rates. Reduced rates also do not apply to people under 25 who were in the care of the State during the year prior to their 18th birthday.
The appropriate rate for all social welfare rates of payment, including the weekly rates for young jobseekers, will be considered by Government in the context of budgetary deliberations.
