Analysis of Labour Market Transition from PUP to Jobseeker Payments in Ireland 2022
Explore the impact of COVID-19 on Ireland's labour market through an in-depth analysis of former PUP recipients transitioning to Jobseeker payments. Understand the challenges faced, examine demographic differences, and consider policy implications for enhancing employability post-pandemic.
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IGEES Irish Government Economic and Evaluation Service Spending Review 2022 Labour Market Trends: An Analysis of the Transition of PUP Recipients to Jobseeker s Payments Zana Babaiee Department of Social Protection December 2022
Spending Review 2022 Overview, Aims & Objectives Overview One of the longer-term economic concerns of the impacts of the COVID-19 pandemic, and the associated public health restrictions, is the potential for scarring effects on the labour market. Despite the lifting of the remaining restrictions and the ensuing rapid recovery in the labour market, a sizeable number of people remained in receipt of the PUP. Six months on from the closure of the scheme, these former PUP recipients are at high risk of experiencing labour market scarring. The longer these individuals remain distant from the labour market, potentially, the greater the effect it will have on their skills, confidence, and ability to be able to re-insert themselves into the labour market. 2 Rialtas na h ireann | Government of Ireland
Aims and Objectives To provide a detailed analysis of the labour market transitions of former PUP recipients totheLiveRegister. To examine the differences in the characteristics of former PUP recipients and the traditionalLiveRegisterclaimants. To investigate how the closure of the PUP has affected the composition of the Live Register. More broadly, what were the medium- and longer-term labour market implications of the pandemic, and how has it affected different cohorts with respect to unemploymentandscarring? 3 Rialtas na h ireann | Government of Ireland
Aims and Objectives To consider which cohorts/demographics/sectors have found it more difficult/easier to leave the PUP and return to work post-PUP? And in terms of policy relevance, which cohorts / demographics may need greater supports from DSP in their journey back into work (those individuals who transitioned from PUP tostandardjobseekerterms)? Given the focus is on those who transitioned from the PUP to the Live Register, a further objective is to examine to what degree have they been able to exit to employmentsincethetransition. 4 Rialtas na h ireann | Government of Ireland
Aims and Objectives The findings from this analysis should, in turn, help inform policymakers when it comes to enhancing the employability of these unemployed individuals through activation and re-skilling opportunities under the national employment services strategy, Pathways to Work 2021-2025. 5 Rialtas na h ireann | Government of Ireland
Spending Review 2022 Key Findings Key Policy Relevant Findings The analysis shows that the PUP transition to the Live Register did not impact the gender and age composition of the Live Register. However, it did have a meaningful impact on the duration and the schemes of the Live Register. The long-term duration proportion increased from 40 to 51 percent following the transition (if time spent on the PUP is counted in the Live Register duration). The proportion of the Live Register claimants in receipt of Jobseeker s Benefit increased from 20 to 31 percent. The rate of persistence for those who transitioned from the PUP (48%) is lower than the traditional long-term Live Register claimants (68%) but higher than traditional short-term Live Register claimants (38%). This could be evidence of scarring and reflects the need for active engagement and support to enhance the employability of these long-term unemployed claimants that have difficulties re-entering the labour market. 6 Rialtas na h ireann | Government of Ireland
