ESRI: Large falls in unemployment rate in deprived areas

RTÉ News​

27-05-2025

The most significant falls in unemployment rates in recent years occurred in more deprived areas, according to new research.
The study by the Economic and Social Research Institute, commissioned by Pobal, has found the disadvantage gap narrowed between affluent and deprived areas.
Using Census data from 2016 and 2022, the ESRI looked at socioeconomic conditions across communities and how potential barriers to social inclusion had changed over time.
While researchers found declines in the prevalence of unemployment, lone parenthood and low educational attainment at the area level, they discovered increases in poor health and disability.
Declines in unemployment were most pronounced in rural areas and in "independent urban towns", which are towns of between 1,500 and 49,999 people, where less than 20% of the employed population are employed in cities.
In 2016, unemployment ranged from 5% in rural areas with high urban influence, to almost 11% in independent urban towns.
By 2022, unemployment had fallen to 3% and 6% respectively.
Report authors have described the fall in unemployment in independent urban towns as "particularly positive", considering the economic barriers to social inclusion faced by individuals residing in these areas.
However, considering rising costs of living and potential job quality concerns, lower unemployment rates do not necessarily translate into better living standards, according to the report.
It also highlights stark differences for lone parent households depending on the area where they are based.
For example, the share of lone parent households is substantially larger in more deprived areas and also in more urban areas.
Having completed previous research on lone parents and the deprivation they face, the ESRI has reiterated a need for "place-based consideration of policy" to reduce potential barriers to inclusion - in this instance childcare, early years education and employability support for lone parents, most likely to be women.
Turning to health, the research looked at how it has changed between 2016 and 2022 by deprivation category.
Worryingly, when it comes to "poor health", there were increases across the board.
The largest changes were evident in the most deprived categories. A combination of poor health and disability was more likely in deprived areas.
From 2016 to 2022, the difference in poor health between the most affluent small areas and the most deprived small areas increased.
While this may have been due to long-term COVID-19 outcomes, previous research has shown that the most deprived areas experienced greater health impacts, the report suggests that it may have been the result of other health related factors which were impacted by the pandemic.
Those in deprived areas with greater health needs pre-pandemic may have suffered disproportionately from the healthcare system "pivoting" from standard care to emergency pandemic protocols, which meant reduced clinics, operations and screenings
The longer-term impact of the pandemic also remains uncertain when it comes to the educational outcomes of disadvantaged youth and those with special educational needs.
Despite this, education levels have improved consistently over the last two decades and continue to do so.
The proportion of the population with low levels of education has fallen across all levels of urbanisation between 2016 and 2022.
As noted in a recent ESRI study and repeated in the latest research, the migrant population have higher educational attainment and a higher employment rate than the Irish-born population.
The latest report also notes that areas with higher shares of ethnic minorities had higher levels of unemployment, lower economic inactivity and higher educational attainment.