Still 413,000 on Covid-19 pandemic unemployment scheme may worry new coalition

There are still almost 413,000 people on the pandemic unemployment payment more than six weeks since the start of the easing of Covid-19 restrictions, suggesting the new Government faces a big headache if it wishes to wind down the scheme at an early stage.
Still 413,000 on Covid-19 pandemic unemployment scheme may worry new coalition

Pictured is Tánaiste and Minister of Business, Enterprise, and Innovation Leo Varadkar arriving at Dublin Castle today ahead of the Cabinet meeting. Picture: Leah Farrell/Rollingnews.ie
Pictured is Tánaiste and Minister of Business, Enterprise, and Innovation Leo Varadkar arriving at Dublin Castle today ahead of the Cabinet meeting. Picture: Leah Farrell/Rollingnews.ie

There are still almost 413,000 people on the pandemic unemployment payment (PUP) more than six weeks since the start of the easing of Covid-19 restrictions, suggesting the new Government faces a big headache if it wishes to wind down the scheme at an early stage.

The numbers on the PUP scheme fell by 26,100 to 412,900 people, the Department of Social Protection said.

Officials have long expected that the number of people availing of the PUP would fall rapidly but the gradual decline in recent weeks has surprised many economists and may point to a higher level of long-term unemployment than once feared.

The number of people on the other main Covid-19 unemployment support, the wage-support scheme, stands at 410,000, according to Revenue figures last week, which means that over 1m people need some sort of welfare payment to make ends meet during the crisis when the official live register of the unemployed are also taken into account.

The Central Bank said last week that unemployment will return to its pre-Covid-19 levels in late 2023 and only then if there is no new outbreak of the disease.

The number of unemployed has risen from its pre-Covid level of 110,000, or around 5% of the labour force, to 600,000 currently, and will likely fall to around 220,000 towards the middle of next year.

It will only return to the pre-crisis level in late 2023, according to the bank's projections, which do not include people whose jobs are subsidised by the public purse under the wage-subsidy scheme.

more articles

Leo Varadkar still has ‘some’ texts from pandemic period Leo Varadkar still has ‘some’ texts from pandemic period
Taoiseach visit to the US Leo Varadkar still has ‘some’ texts from covid pandemic period
Nolan says lessons need to be learned from Covid inquiry Nolan says lessons need to be learned from Covid inquiry

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited