Written answers

Wednesday, 6 May 2015

Department of Social Protection

Youth Unemployment

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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119. To ask the Minister for Social Protection the extent to which her Department continues to be in the position to avail of European Union support to alleviate youth unemployment; and if she will make a statement on the matter. [17852/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Government's primary strategy to tackle youth unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people.

In addition, there is a wide range of employment services, along with programmes of training and education, work experience, and recruitments supports that address the particular labour market issues facing young people. These are set out in detail in Ireland's implementation plan for the EU Recommendation on a Youth Guarantee, and involve other Departments – most notably the Department of Education and Skills – as well as the Department of Social Protection.

In support of the recommendation for a Youth Guarantee, the EU council agreed that a total of €6bn would be earmarked within EU funds to support approved Youth Employment Initiative projects over the course of the seven year Multi-Annual Financial Framework (MFF) 2014-2020. This €6bn comprises €3bn from within the existing European Social Fund (ESF) and an additional €3bn in the form of Youth Employment Initiative (YEI) funding.

The EU Institutions have now agreed that YEI funding should be reserved for use in those regions where youth unemployment levels exceeded 25% during the reference year of 2012 (since extended to include regions where youth unemployment was over 20% in 2012 in Member States where youth unemployment had risen by more than 30% over the previous year). Both regions within Ireland satisfy the original 25% threshold. Ireland's allocation is €68.14 million.

The YEI fund is to be allocated to approved projects on a proportional basis. Expenditure on ESF actions will have to be matched by national funds, in accordance with normal structural funds rules. Member States can then access a share of the additional €3 billion. Where ESF-supported projects are eligible for YEI as well, the YEI funding will be equal to and additional to the ESF support.

In 2014 alone, the costs for implementing the programmes for the young unemployed in Ireland's Youth Guarantee Implementation Plan were €336 million, or €528 million if the costs of PLC courses and the apprenticeship system are included. Similar costs are likely be incurred, on an annual basis. These costs, in the first instance, are borne by the Irish Exchequer. It is anticipated that a sufficient share of this expenditure will meet the relevant eligibility criteria, to allow a full draw-down of Ireland's YEI allocation and the related ESF funding.

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