According to CSO data, 216 959 people were estimated to be either out of work or in receipt of the government's pandemic unemployment payment in November 2021 - Leaving Cert Home Economics - Question 3(a) - 2022

Changing requirements of industry

The requirements of various industries have evolved due to several factors including technological advancements and shifts in economic conditions. For example, automation and globalization have reduced the need for certain low-skill jobs while increasing the demand for high-skill workers, thereby contributing to unemployment among those unable to meet new skill requirements.

Geographical location

Geographical disparities can notably impact employment opportunities as certain regions may face higher unemployment rates. Areas with fewer job offerings or economic activities often see residents struggling to find work, leading to localized unemployment.

Level of consumer demand for products and services

Fluctuations in consumer demand greatly influence employment. When demand for certain goods and services declines, businesses may reduce their workforce or implement hiring freezes, resulting in higher unemployment rates, particularly in sectors directly affected by changing consumer behavior.

Unemployment can have profound effects on society.

• Economic impact: High unemployment results in reduced household incomes, leading to lower consumer spending which can further depress the economy. This cycle can lead to increased government spending on social welfare programs.

• Social consequences: The social fabric can be strained as job loss often leads to feelings of disenfranchisement and decreased mental well-being among individuals and families. Issues such as crime and substance abuse may rise in areas with high unemployment, exacerbating societal problems.

• Generational effects: Children in households affected by unemployment may suffer from reduced educational outcomes and limited opportunities, perpetuating a cycle of poverty and unemployment across generations.

One statutory initiative aimed at creating employment is the JobPlus scheme. This program incentivizes employers to hire individuals who are long-term unemployed by offering them financial support. The initiative helps by providing job seekers the opportunity to gain necessary experience and skills in the workplace, thus enhancing their employability. Furthermore, it encourages businesses to fill skill gaps by integrating these job seekers into their workforce, which ultimately benefits the broader economy.