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The Economic and Social Research Institute said the move would give rise to weaker financial work incentives unless capped or time-limited.
The unemployment rate in December 2021, adjusted due to the PUP, stood at 7.5%.
“Significant investments” in housing, climate change and healthcare will be required, the ESRI said.
The Pathways to Work 2021-2025 strategy was launched by the government this morning.
With cost of living taken into account, Ireland has just the seventh-highest minimum wage in Europe.
Varadkar said the phasing out of the PUP provides an opportunity to reform the country’s social welfare system.
The bonus will be paid in the week beginning 7 December.
Young people have been hit especially hard in the latest unemployment figures.
Almost 330,000 people are now receiving the Pandemic Unemployment Payment.
The latest forecast is buoyed by the ‘resilience’ of Irish exports.
CSO figures show that the unemployment rate in September for people aged 15 to 24 rose to 18.9% – down from 19.5% in August.
The PUP will move from two rates of payment to three rates, and the top rate is being reduced.
Changes to payment rates will still go ahead as planned on 17 September.
Just over 41% of people in the labour force aged between 15 and 24 were unemployed in July.
The wage subsidy scheme will also be extended but the Taoiseach indicated a move away from supports towards greater employment.
Some 95,800 people are now receiving the reduced payment of €203 per week.
The investigation is linked with up to 25 separate claims made under the scheme, totalling over €56,000.
The number of people in receipt of Covid-related payments is decreasing as more businesses start to reopen.
A new paper calls on policymakers to ‘transform’ precarious and low-paid jobs.
The Taoiseach made the announcement at midday today.
The business lobbying group forecasts Irish unemployment to level off at 16% and GDP to contract by 11% for the year.
If all claimants of the Covid-19 PUP payment are included, 26.1% of the Irish workforce are unemployed.
The think-tank has sketched the likely impact of the virus across a range of Irish economic indicators.
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Leo Varadkar said a limited easing of restrictions could begin on Monday.
The CSO has said people on the payment do not meet the definition of being unemployed.
Social protection minister Regina Doherty said she would hope construction workers would be returning to work soon.
Last week it was confirmed that up to 230 workers were to be removed from the company’s payroll.
However, the finance minister said Ireland will rebuild its economy.
Paschal Donohoe says people may have to move to normal social welfare schemes and wages subsidy scheme will have to be tapered.
Around 50,000 people currently receiving the unemployment payment are receiving income support for the first time.
The department said the benefit was paid at the original rate “pending the system being built to apply the increased rate”.
Tánaiste Simon Coveney also confirmed the Department of Foreign Affairs has helped some 4,600 Irish citizens return home.
The CSO released the figures this morning.
The government today announced additional supports.
Minister Regina Doherty said 43,000 of those applications have been processed so far.
The two private companies operating JobPath have been paid €207m.
Private companies operating JobPath get over €3k for every jobseeker that makes it through the scheme.
Private companies operating JobPath get over €3k for every jobseeker that makes it through the scheme
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