Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 12, 34 and 53 together.

We know from past recessions that young people tend to be disproportionately impacted by any labour market shock. This is because many employers operate a last in, first out protocol when reducing their labour forces and young people tend to work in occupations and sectors that are most immediately affected by economic downturns, for example, retail and hospitality.

Research recently published by my Department shows that the impact of the Covid-19 pandemic has been no different. Youth unemployment stood at just over 10% in quarter 1 of 2020 based on the labour force survey data, with approximately 20,000 under-25s on the live register. By quarter 3 of 2020, these figures had increased to 20% and 25,000, respectively. By the end of October, and if we include PUP recipients, more than 45% of young people in the labour force were unemployed. However, it is important to note that the Government extended access to the PUP to students who worked part time. As a consequence, one in four of those in receipt of PUP and under 25 years of age have self-certified as students. Using internationally recognised standards set by the International Labour Organization, these students would not normally be considered or counted as unemployed.

While young people are disproportionately affected, we know from past recessions that youth unemployment levels typically fall quickly once economic activity resumes. However, the evidence also shows that some young people will remain disconnected from employment and that those who cannot find their footing again tend to suffer permanent scarring effects, with unemployment and social isolation becoming entrenched.

We are taking a number of important steps to create opportunities and options to help young people get back to work. My Department and the Department of Further and Higher Education, Research, Innovation and Science are developing a range of support measures to assist young people. Measures announced under the July jobs stimulus package to combat unemployment include expanding the capacity of Intreo centres to provide enhanced employment services and supports with the assignment of 100 job coaches; expanding the benefit of the JobsPlus recruitment subsidy to employers who hire young people from the live register; providing 35,000 new places in further and higher education courses; providing incentives to employers to take on more apprentices through the provision of a grant of €3,000 to employers for each new apprentice recruited; and facilitating access to the back to education allowance and the back to work enterprise allowance to those displaced by the pandemic by waiving the usual qualifying period. My Department is also developing a new work experience placement programme for those out of work for at least six months to encourage employers to provide jobseekers with the necessary workplace skills to compete in the labour market, thereby helping to break the vicious circle of no job without experience, no experience without a job. I expect to launch the programme in early 2021, subject to public health restrictions.

In developing these programmes and services, the Department is working closely with, and being advised by, the Labour Market Advisory Council, which is composed of leading market experts, representatives of industry and workers and representatives of unemployed people. We will keep these programmes under review and report progress on a regular basis.

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