Latest government figures show that 591,000 people are currently receiving the Covid-19 Pandemic Unemployment Payment (PUP), up 7,000 on the week.

As of April 27, there are 49,000 employers registered for the Temporary Wage Subsidy scheme (TWSS), with 337,000 workers benefiting from the measure. A further 212,000 people are claiming the normal unemployment Jobseeker Benefit or Jobseeker Allowance.

As of April 17, there were 45,150 employers registered for the TWSS, up from 42,100 on 14 April. Of the 281,o00 employees benefitting from the TWSS on April 17. Preliminary statistics published by the Revenue Commissioners illustrate that:
• 82% of employers availing of the scheme have fewer than 20 staff.
• Almost 70% of employees benefitting from the scheme had average net weekly pay of between €300 and €700.
• 82% of employers are making some level of top up payment in addition to the TWSS. Of these:
• 31% pay a top up of between €1 and €100.
• 40% pay a top up of between €101 and €200.
• 10% pay a top up in excess of €400.

Since March 16, the Department of Employment Affairs and Social Protection has processed applications from 691,000 people for the PUP or a jobseeker’s payment. To date, over 64,000 people have ceased receiving PUP, in many cases because employers took them back onto their payroll under the TWSS.

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Employment minister Regina Doherty (pictured) said that the smaller increase in Covid-19 payments over the past week  suggested that the worst of temporary job layoffs has been overcome.

“That said, with over a million people in the country now dependent on some level of state provided income support, the scale of the challenge that this health emergency has posed for our national economy and to so many households is now very clear,” she added.

Commenting on the figures, Davy economist Conall MacCoille said that they point to a 25% drop in employment, while the adjusted unemployment rate will rise to 30%.

“Total welfare recipients are 1.14 million. The Department of Finance had estimated that the welfare supports would cost €3.7bn for 12 weeks, and has now revised this to €4bn to €4.5bn,” he stated.

In a recent analysis, the Parliamentary Budget Office noted that the Covid-19 employment and unemployment support costings announced on March 9 (€2.4bn) and March 24 (the latter for a 12-week period - €3.7bn) suggested that a total provision had been made for spending of €6.1bn.

The PBO observed: "On April 21, the Stability Programme Update 2020 (SPU) provided an estimated cost of €4 - €4.5 billion for the 12-week period. The lack of clarity and detail provided to Dáil Éireann as to the cost of the pandemic in relation to Employment and Unemployment is of concern."

MacCoille also noted ESRI warnings that most employees will receive no more under the TWSS than the PUP, which may incentivise employees to seek unemployment.

“The Department of Finance has taken action to eliminate the financial incentive to not participate in its wage subsidy scheme. From May, 85% (up from 70%) of gross earnings up to €500 per week can be claimed, with a cap of €350.

“Minister for Finance Paschal Donohoe said the PUP and TWSS schemes may be tapered and changed when they expire in June. Nonetheless, to some extent the damage to the labour market has likely been accentuated by younger, part-time workers seeking to supplement their income.”

PANDEMIC UNEMPLOYMENT PAYMENTS BY SECTOR