2026-01-13

111. Deputy Sinéad Gibney asked the Minister for Enterprise, Tourism and Employment whether his Department is concerned about the rising rate of long-term unemployment and the rising rate of youth unemployment, which stands at nearly three times the average unemployment rate, according to the CSO; the measures his Department is taking to find the cause and address these issues in the Irish labour market; and if he will make a statement on the matter. [2383/26]

The CSO's labour force survey before Christmas found that we have significant increases in youth and long-term unemployment. The youth unemployment rate is nearly three times the average unemployment rate and it is clearly becoming much harder for young people to find work. What is the Department doing to address this increasing gap in our labour market?

I thank the Deputy very much for her important question. The programme for Government sets out a strong enterprise and fiscal framework that prioritises economic and employment growth and competitiveness. I am pleased to report that the Irish labour market saw sustained employment growth, rising labour force participation and record job numbers last year, indicative of a resilient performance. In total, over 2.8 million people are now employed in Ireland, with employment up 61,500 on average in the first nine months of the year and with the pace of job creation slowing as the year progressed. Ireland’s labour market performance compares very favourably with the performances of our European counterparts. Ireland’s youth unemployment rate, at 14% as of December, is well below the rates of our European peers, namely 15.2% in the EU and 14.8% in the euro area. That said, we are continuing to monitor the unemployment rate. Several of the Government’s initiatives will be central in this regard, not least our ambitious investment plans and, of course, the Action Plan on Competitiveness and Productivity, published last year by the Minister, Deputy Peter Burke. The Government remains fully committed to improving our competitive position to add more jobs in the future. The action plan has a range of measures to address and build a more resilient economy. Another important document will be the successor strategy to Pathways to Work 2021-2025, which is overseen by the Department of Social Protection. In fact, the Department has concluded public consultation on this as we look to develop a new strategy. The programme for Government was clear on our ambition here, which is to create 300,000 additional jobs by 2030.

I find it frustrating that when we highlight issues or concerns about rising youth unemployment and long-term unemployment rates, they seem to be batted away with lines like those that the Taoiseach used earlier and that we are hearing now to the effect that we have got so many people in work, that the rate is record breaking and that this is the most important thing. Essentially, the point made is that we should all be grateful that people have jobs at all. Níl sé seo maith go leor. We have seen a distinct rise in youth unemployment that is incredibly out of step with the national average. The Minister of State compared us with Europe, but we need to compare our domestic youth unemployment rate with our general population unemployment rate. When we do so, we see the difficulty. In an uncertain labour market, where quality jobs and secure employment are being eroded, we must not have a Government deciding it is not an issue or focusing instead on the broader picture and not isolating this as the canary in the coalmine we know it to be in labour economics. Fifty thousand young people are without work. We are seeing companies row back on entry-level and graduate recruitment. If we do not act now to ensure a balanced labour market, we will have people on the back foot for their entire lives. How is this specifically being addressed?

I thank the Deputy. As she will hear in my response, I acknowledge the fact, laid out in the CSO data, that there is a clear rise in youth unemployment, with the unemployment rate pertaining to young people between the ages of 15 and 24 having risen to 14% in quarter 3 of 2025 from 11.5% a year previously. This compares to a more modest rise in unemployment among our older cohort, from 3.4% to 3.9% among those aged 25 to 74. I acknowledge that. However, there is a strong underlying demographic effect within the labour force survey numbers, reflecting high inflows into the labour force from those born in 2007. The employment rate of those aged 15 to 24 years is more volatile and subject to seasonal fluctuations. The CSO has told us that the 15- to 24-year-old age group accounts for 15% of employment, a ratio that is unchanged in a decade, although that is not to say it is acceptable. However, the same cohort now accounts for nearly one third of unemployment, up a quarter from a decade ago. With regard to graduates or educational attainment, for those aged 15 to 24, unemployment has increased by 9,500 persons but the vast majority of this was accounted for by those with levels of education at secondary level or below.

I encourage the Minister of State to go beyond the numbers and talk to young people herself. The young people I speak to tell me about the difficulties they have in finding employment. Beyond the statistics that the Minister of State is setting out, we have to simply acknowledge this. As I mentioned, and as we know from history repeating itself, it is a canary in the coal mine. We know it is an indicator of a broader concern across unemployment. We know there has been an erosion in the quality of the work that is offered, particularly to younger people and other cohorts within our population. When I raise workers’ rights, the approach of this Government has been that job creation is enough, and we should be grateful that people have jobs in the first place. In a time of economic prosperity, where we are talking about the strength of our economy, our balance sheet and our enterprises, it is depressing not to see that translate to workers. Is cúis mhór imní anseo. A booming economy is cold comfort to people who cannot participate in that economy. Record corporation profits do not continue on to our society if companies are not employing people, if they treat their workers as disposable and if they do not provide quality jobs. What is the Government doing to tackle those issues head-on?

Pathways to Work, as a national employment strategy, addresses the key targets, as the Deputy has laid out. The key target strategy includes: supporting 75,000 long-term unemployed into employment by May and reducing long-term unemployment by 2.5% of the labour force by 2025; reducing youth unemployment to below its 2019 average of 12.5%; ensuring better labour market outcomes for those most at risk of poverty, including lone parents and people with disabilities; and improving labour market transitions by reducing the rate at which the newly employed progress into longer-term employment. I acknowledge there is a challenge and a difficulty. However, it is fair to say that the strategies are in place and are a key target for us.