2026-02-26

1. Deputy Louise O'Reilly asked the Minister for Social Protection if his attention has been drawn to the rising rates of youth unemployment; the strategies he is developing to address this issue; if his attention has been drawn specifically to the causes of unemployment for the 18- to 24-year-old cohort; the extent to which he has investigated the impact of automation and AI on the youth labour market; and if he will make a statement on the matter. [15402/26]

My question, as the Minister will see, is simple and straightforward. I hope he has plenty of very enlightening answers for me. The question concerns the issue of youth unemployment and, in particular, the impact of automation and AI, which is causing a bit of what might be called a bottleneck. Where previously there would have been a pipeline to move through, a lot of younger people are getting stuck because jobs they would traditionally have moved into are now being done by AI and automated in other ways.

Gabhaim buíochas leis an Teachta as an gceist thábhachtach seo. According to the latest labour force survey, which was released by the Central Statistics Office, CSO, on 19 February, employment has been increasing for young people, standing at 323,200, which is up 6,000 over the past year. Reflecting this, the youth unemployment rate of 9.8% in quarter 4 of 2025 is lower than a year earlier, when the rate was at 9.9%. It is important to note that youth employment is in most economies generally about twice the level of unemployment. This is because youth labour data is impacted by participation in education. When participation in education is taken into account, the results of the survey also show that the rate of those not in education, employment or training stands at 6.3%. This rate includes not just young unemployed people but also younger people who may be disabled. The rate remains low by historical standards and compares favourably. However, I am concerned about the rate. I also agree with the Deputy's concerns about AI. However, as with earlier forms of technological progress, while AI will displace jobs, it will also create jobs and in doing so increase productivity, the gains from which will be reflected in general economic performance. It is too early to say with any confidence what the balance of these effects will be, though historical experience indicates that the gains may be more significant than the losses. That said, the expert group on future skills needs published a recent report which highlighted our leading global position in relation to AI. It highlighted a strong demand for workers with AI skills and indicated that the adoption of AI presents considerable potential for Ireland's employment and labour market. The Department of Finance has also published research on this subject. It has identified the at-risk sectors as being the ICT, financial, professional, scientific and technical sectors. It noted, which supports the Deputy's contention, that the impact of AI was likely to be more concentrated in entry-level jobs. We are monitoring these developments closely. I will get a chance to speak about the Pathways to Work process in my next response.

That will be welcome. A number of factors need to be considered. I welcome the fact that the Minister is concerned because I am, too. I feel that when we are both concerned about something, we might be able to do something about it, which would be good. I welcome publication of the report into AI. However, there is an issue. Youth unemployment is rising at a faster rate than that of the general population. Therefrom comes both of our concerns. What is needed is a bespoke programme for younger people. We are heading into a period where we may experience some unemployment. I feel that now is the time to get ready for that, with the specific needs of younger people in mind, and acknowledge, as the National Youth Council of Ireland has pointed out, the bottleneck that exists whereby people are unable to move on to more fulfilling or different jobs. The other issue is that of underemployment. A lot of younger people who are working have the capacity to work more but cannot get that work.

I thank the Deputy. I confirm that we are monitoring all AI developments very closely. We are doing so in the context of developing the successor strategy to Pathways to Work. That strategy will include priorities for younger people. We expect it will be published in quarter 2 of this year. We have made some changes. I particularly draw the attention of the Deputy to the changes in Tús. The Tús work placement scheme is being extended to 18-year-olds who are in receipt of jobseeker's allowance or who are the beneficiaries of temporary protection, and those people who are assessed as having a low probability of being able to access work in the open labour market after they meet an employment personal adviser. Some 150 people have availed of this option and it is already being found to be particularly effective following a review undertaken jointly by us, the OECD and the European Commission. We will explore the potential for it to expand, with a specific focus on those who may have difficulties in securing employment. Our teams in Intreo are engaging closely and intensely with younger jobseekers to try to get them onto courses and into supports at the youngest possible age to avoid the chances of them being detached from the labour market.

I thank the Minister. He mentioned that Intreo staff are engaging intensely. He might provide me with a note on the type of engagement and where it is that Intreo is directing people. We know that 50,000 young workers are either working part time or on low-hours contracts. In some instances, much and all as they should not be, they are on zero-hours contracts. I met representatives of the National Youth Council of Ireland. They are saying clearly that there is not just youth unemployment, which is an issue and which I feel is a bit of a canary in a coalmine, as I have said previously, but there is also the issue of underemployment. If we look at the statistics, we will see that 18% of 25-year-olds had to go back to their parents' houses after attempting to live on their own and 43% have never left. Clearly, there is an issue. We have all been 25, albeit that it was a long time ago, and you do not necessarily want to be living with your parents at that age. I do not think that figure represents people who are happy to be at home. Those are people who are stuck at home. That needs to be examined.

I will certainly provide that information to the Deputy. The range of supports that Intreo advisers use includes Springboard+ and identifying Springboard+ opportunities. It provides free and sometimes heavily subsidised education for in-demand skill areas. We can match courses to people's skills and abilities. SOLAS continues to provide focused training programmes. There is also the work placement experience programme. With the back-to-work enterprise scheme allowance, I am encouraging people to set up their own businesses. That is something I am very passionate about. I will be asking the Department to focus on supporting people through the journey of setting up their own businesses, giving people options and, most importantly, providing the supports to go through that. We also have the short-term enterprise allowance. There is a range of schemes there. I will engage with the National Youth Council of Ireland about how we package those schemes in a way that can be understood, and understand how they are relevant to the current demands of the labour market and the pressures that are on people. I will come back to the Deputy about underemployment.