Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Central Statistics Office latest monthly figures report that the seasonally adjusted unemployment rate for persons aged between 15 and 24 was 13.9% in March 2017. This is a significant decrease of more than five percentage points, from 19% in March 2016.

Lower weekly rates for younger jobseekers were first introduced in 2009 and further extended in subsequent budgets. The rationale for these rates is to prevent young unemployed people from entering longer-term welfare dependency by providing a strong financial incentive to take up a job, training or education programme. Should a young jobseeker on a reduced jobseeker’s allowance payment participate on an education or training programme, he or she will receive a higher weekly payment of €160. This rate will be further increased to €193 per week from September 2017.

The National University of Ireland, Maynooth, NUIM is undertaking a piece of research at the moment which is examining the effectiveness of the reduced rates in encouraging young jobseekers to avail of education, training, employment programmes and opportunities. My Department has not commissioned the NUIM to undertake this research. Rather, as part of an effort to encourage and promote research, my Department has facilitated the NUIM with access to the data from the jobseeker’s longitudinal database to undertake this research. The findings of the NUIM research are likely to form the key element of the review which my Department is undertaking in line with the Pathways to Work 2016-2020 strategy. It is hoped that the research and report will be completed shortly.

With effect from last month, rates of jobseeker’s payments were increased for claimants of all ages as a result of measures introduced in budget 2017. I have no plans for any further increases in rates at present. Any such changes could only be considered the context of the next budget.

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