Dr. Helen Johnston:

Unemployment is one of the most devastating impacts of the economic crisis. While the focus of unemployment tends to be on individuals, there is a related concern, namely, the impact on households where no one is working or has very limited access to work. It is very different for an unemployed person to be living in a household in which others are employed as opposed to living in one in which no one works. There is a need to address the issue of household joblessness for the households themselves, especially in terms of the future of their children, to reduce poverty, for the productive capacity of the economy, for the common good and societal well-being.

Jobless households are defined in two ways. One is based on working adults living in a household in which no one is at work, using the Central Statistic Office’s labour force survey. The other is based on low work intensity where a household is considered jobless if the total time in work in the past year by all working-age adults, excluding students, is less than 20% of their working time using the Central Statistic Office’s survey of income and living conditions, SILC.

On both measures, Ireland has an above average share of the adult population in jobless households. In 2012 the labour force survey showed Ireland had a 16% share of jobless households compared to an EU average of 11%, while the 2011 SILC showed that nearly one quarter of households in Ireland were described as jobless, twice the EU-15 average. A particular feature of Ireland’s jobless households is the likelihood that they contain children.

There was a sharp increase in the number of jobless households in Ireland following the economic crash in 2008.

This increase has been attributed to a combination of factors. These factors include the increase in unemployment, changes in household structure and other characteristics such as having a disability or caring responsibilities. In Ireland jobless adults are less likely to live with at least one working adult than in many other European countries. The working patterns in couple households have changed in that there has been a decline in what are described as traditional male breadwinner households, in other words, one-earner households. At the same time, there has been an increase in dual-earner households and a growth in households where neither partner is at work.

The complexity of jobless households is reflected in their composition. Children make up nearly one third of people living in jobless households, while those who are officially described as unemployed make up a further one fifth of those living in such households. A further 18% of people in jobless households are people who are in home duties, while 12% are sick or disabled persons and 13% are students aged over 16 years or adults who are otherwise inactive in the labour market. Those who live in jobless households are more likely to have no educational qualifications, have never worked or be in the unskilled social class. They are also more likely to be parenting alone, have a disability or live with someone with a disability.

Why does Ireland have such a high rate of household joblessness? The various explanations put forward to explain the causes of household joblessness can be summarised as follows. The first reason is the operation of the tax and welfare system, which can result in disincentives and traps for those trying to make the transition from welfare to work. A further reason is the state of the labour market, in which there is a lack of jobs or a mismatch between education, training and skills and available jobs. The characteristics of jobless households, which may make it more difficult to access jobs, are a further reason. Such characteristics include lone parenthood, disability, caring responsibilities and low levels of skills and education.

A number of responses have been made to address the problem of unemployment, if not specifically household joblessness. They include the Pathways to Work programme, the Action Plan for Jobs and the work of the advisory group on tax and social welfare. Notable reforms include the transformation of both the public employment system and education and training services and the reconfiguration of the one-parent family payment. Given the diversity of household joblessness, however, the issue will not be resolved through single solutions but through packages that reflect the complexity of jobless households and their needs. This means the emphasis on participation and activation must extend beyond those who are on the live register.

Responses should include the provision of more tailored services that respond to people's needs and circumstances. This will require connectivity and co-operation between service providers at the local and national levels, an understanding of the issues and the provision of appropriate supports at local level. Some degree of devolution and flexibility may be required within an overall framework of accountability. The National Economic and Social Council is planning further research to explore these issues and identify solutions to address them.