Forthcoming policy developments

Ongoing debates

Youth Unemployment and Covid-19

Prior to the Covid-19 pandemic, the seasonally adjusted youth unemployment rate for 2019 averaged approximately 12.5%. It is well documented that young people in the labour market, (those under 25 years of age), were particularly vulnerable to the disruption caused by the pandemic. Young people account for 11.7% of the workforce but total 20% of all PUP claims. The high share of young people on the PUP during times of lockdown was driven by their likelihood to work in the most impacted sectors such as hospitality and retail. These sectors were typically among the first to close in times of increased incidence of Covid-19 and the last to reopen during the phased easing of restrictions.

As such, the changes in youth unemployment have been sharper than for any other age group, as sectors of the economy closed and then reopened. The CSO’s ‘Covid-19 adjusted’ monthly youth unemployment rate which includes all those in receipt of the PUP peaked at almost 70% in May 2020. It should be noted, that numbers in receipt of the PUP included some who- under standard unemployment definitions- would not be considered eligible for unemployment payments, such as students- the vast majority of whom are young people.

However, since the middle of 2021, there has been a sharp recovery across the labour market as public health restrictions eased and businesses and society were able to reopen. For young people this was evident in June and July 2021 following the reopening of hospitality and retail. Despite the partial re-introduction of public health restrictions in early December 2021, the traditional youth unemployment rate and Covid-19 adjusted youth unemployment rate at the end of the month were 9% and 11.4% respectively. This represents a sharp decline and convergence in the two rates compared to earlier in the pandemic.

Long-term youth unemployment

In recent years, social welfare payments to young unemployed people under 25 years of age were reduced to a lower level than adult unemployed people.

NYCI has called on the government to restore the full adult rate of €198 to young people on Jobseeker’s Allowance over the next two budgets. According to NYCI, ‘the imposition of lower rates on young jobseekers is contrary to the provisions of Article 40.1 of the Irish Constitution, which dictates that all citizens should be treated equally and must be addressed.’ However, due to the Covid-19 pandemic, there has been little work completed on restoring the full adult rate to young people.

These weekly social welfare payments to unemployed people have since been tailored to better take into account 18- to 24-year-olds' circumstances.  

The Jobseeker Allowance rate for those unemployed people aged over 25 is €232. Unemployed people aged 18-24 are also eligible for this €232 payment if they are living independently and getting a state housing support. However, the Jobseeker Allowance rate for 18- to 24-year-olds who are not living independently is €141.70. 

There is also a rate Increase for for Jobseekers who have (an) adult dependent(s). This weekly increase is €154 for those aged 25 and over, and for those aged 18-24 who are living independently. For those Aged 18-24 who are not living independently, this is €141.70 (to a maximum personal rate of €232). 

These reduced personal and qualified adult rates of Jobseeker’s Allowance for 18- to 24-year-olds do not apply to:

• People with dependent children
• People transferring from Disability Allowance to Jobseeker’s Allowance 
• People who were in the care of the Child and Family Agency during the 12 months before reaching 18.

For further information and terms please visit Citizen's Information. 

Youth Employment Strategy

Social Justice Ireland called for the adaption of the new Youth Employment Strategy. Due to Covid-19, young people were disproportionately affected by unemployment as the economy recovers from Covid-19. 

Since then, the Department of Social Protection published the Employment and Youth Engagement Charter on the 28 May 2024. It is a government initiative to help those who are at risk of not easily moving into employment. It is one of the commitments included in government’s national employment strategy under Pathways to Work 2021-2025. The Employment and Youth Engagement Charter provides a framework to collaborate with employers to support and inspire young jobseekers and other priority groups to build their knowledge, skills and experience to enhance their employability. The Employment and Youth Engagement Charter has been developed with the help of employers, voluntary agencies and young people and is a practical document that is representative of both the needs of employers and employees.