Over half of young people are out of work due to Covid-19 restrictions
The Central Statistics Office (CSO) has issued Monthly Unemployment Estimates results in respect of April 2020.
Edel Flannery, Senior Statistician, CSO, explains the approach taken today regarding the publication of the Monthly Unemployment and the COVID-19 Adjusted Unemployment Estimates:
“Those persons in receipt of the COVID-19 Pandemic Unemployment Payment at the end of April 2020 do not meet the internationally agreed criteria to be considered as unemployed for the purposes of the compilation of the standard Monthly Unemployment Estimates.
"Therefore, the CSO is producing a supplementary measure of unemployment in parallel with the routine Monthly Unemployment Estimates.
"This COVID-19 Adjusted Monthly Unemployment measure includes those in receipt of the Pandemic Unemployment Payment in the calculation of the adjusted unemployment rate. It should be considered as the upper bound for the true rate of unemployment and the standard monthly rate as the lower bound.
"This approach preserves the methodology of the standard Monthly Unemployment Estimates series while at the same time providing transparency around the impact of COVID-19 on the labour market.”
Commenting on today’s publication, Edel Flannery continued:
“The COVID-19 crisis has continued to have a significant impact on the labour market in Ireland in April 2020. While the standard measure of Monthly Unemployment was 5.4% in April 2020, a new COVID-19 adjusted measure of unemployment indicates a rate as high as 28.2% if all claimants of the Pandemic Unemployment Payment were classified as unemployed.
"The Monthly Unemployment Rate for April 2020 using standard methodology is 5.4%, up from 5.3% in March 2020. In April 2020, the Monthly Unemployment Rate for males and females were 5.4% and 5.3% respectively. Breaking the results down by broad age group, the Monthly Unemployment Rate for those aged 15 to 24 years was 12.5% while it was 4.4% for those aged 25 to 74 years."
As well as the standard Monthly Unemployment Estimates for April 2020, the CSO have also published an alternative COVID-19 adjusted unemployment measure estimating the share of the labour force in April 2020 that were not working due to unemployment or who were out of work due to COVID-19 and receiving the Pandemic Unemployment Payment.
"If all claimants of the Pandemic Unemployment Payment were classified as unemployed, this COVID-19 Adjusted Measure of Unemployment indicates a rate of 30.0% for males and 26.1% for females. Breaking the results down by broad age group, the new COVID-19 Adjusted Measure of Unemployment indicates a rate of 52.8% for those aged 15 to 24 years and 24.8% for those aged 25 to 74 years.”
The results show young people are worst-affected by the measures with more than half of 15-24-year-olds out of work as a result of the pandemic.