Post-Covid redundancies to arise but record number in employment expected next year

Tánaiste Leo Varadkar has said while many sectors are rebounding from challenges during the Covid-19 pandemic relatively quickly, "a smooth recovery is certainly not guaranteed" and that redundancies will arise in some businesses.

The Minister for Enterprise, Trade and Employment said, however, that it was expected there will be “more people working than ever before” next year.

Mr Varadkar was responding to questions from Sinn Fein TD Louise O'Reilly in the Dail on Thursday in relation to the estimated number of expected redundancies resulting from the pandemic in 2022.

“We’re facing a pandemic and yet in the face of that pandemic the economy is growing very rapidly,” Mr Varadkar said.

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"There are 2.4 million people at work. We think actually next year there will be more people at work in Ireland than ever before. Most sectors are doing extremely well, but there are some sectors that are hit really hard."

He said there are two economies in Ireland, sectors that are affected and those that are unaffected by Covid-19.

He said the number of people on the Pandemic Unemployment Payment (PUP) had fallen to 54,824 at the end of November, the lowest level to date. Mr Varadkar said 5,452 potential redundancies were notified in 2019, 12,514 in 2020 and 7,500 to date this year.

Restrictions scepticism

The Tánaiste also said that he will maintain a “healthy scepticism” around additional Covid-19 restrictions as the Minister for Enterprise, Trade and Employment.

“I hate to see any business being closed or being restricted. As Minister for Employment, I really hate to see anyone being laid off, especially for the second or third time,” he said.

“As a politician who believes in personal freedom and liberty, I hate to see people’s individual freedoms, our family life being restricted by governments in any way, but sometimes it is necessary.

“Anytime we impose restrictions on people and on business, I think we need to ask questions – where’s the evidence, will this work, are there alternatives? I feel that’s my responsibility and I will continue to do so, particularly if further restrictions are proposed in the weeks ahead.”

Mr Varadkar said restrictions announced last Friday were a “bitter pill and a deep disappointment to all of us”.

“They were a body blow in particular for sectors like hospitality, the arts, events, entertainment and leisure, which rely on December to see them through other parts of the year,” he added.