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Persons not in Labour Force

LFS estimates were updated on 22nd Feb 2024 to incorporate updated population estimates for the period 2016 Q3 to 2023 Q3, based on the results of Census 2022. LFS results are updated in this way following each Census of Population. For further information see Background Notes.
The data in this publication does not reflect these updates. Please refer to the relevant tables on LFS Px-stat for updated LFS estimates.

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The background notes at the end of this release contain the definitions for respondents to the Labour Force Survey (LFS) to be classified as employed, unemployed or inactive based on the ILO criteria. Respondents in the LFS are first asked a suite of questions to check if they were Employed. If a person is not classified as Employed, they are asked a suite of questions to determine if they should be classified as Unemployed. The criteria are as follows:

  • Not classified as Employed
  • Has been actively seeking work in the 4 weeks prior to interview
  • Is available to start work in the 2 weeks after the interview

Persons aged 15 years or over are classified as not being in the Labour Force (Inactive) if they do not satisfy the ILO criteria for being classified as being Employed or Unemployed.

Unlike previous downturns, the COVID-19 Pandemic has had a peculiar effect on the Labour Market in Ireland. This is because displaced workers during COVID-19 lockdown were more likely to be classified as Inactive rather than Unemployed as the majority, although available to start work, had not been seeking work in the previous 4 weeks. Thus, they failed to meet the criteria to be classified as Unemployed.

Table 8.1 Detailed breakdown of classification of persons aged 15 years or more not in the Labour Force, Q3 2019 to Q3 2021

The Potential Additional Labour Force (PALF) is the sum of the two groups ‘Seeking work but not immediately available’ and ‘Available for work but not seeking work’. Persons in the PALF are not part of the standard labour force, which encompasses only Employed and Unemployed people but however they have a stronger attachment to the labour market than other persons not in the labour force. Persons ‘Available for work but not seeking work’ accounted for the majority of the PALF in Quarter 3 of 2019 to 2021.

The number of persons in employment increased by 221,200 in the year to Q3 2021 reflecting the continued easing of Public Health restrictions in that quarter. This was accompanied by a fall of 30,100 in the number of persons unemployed and a fall of 147,100 in the number of persons outside of the labour force. This meant that persons re-entering the labour market in Q3 2021 were far more likely to have found a job rather than being classified as unemployed.

In Q3 2020, the dynamics of the labour market were quite different. Public Health restrictions were beginning to ease from the lockdown of Q2 2020. Employment levels were down 73,400 from pre-pandemic levels in Q3 2019 and unemployment increased by 51,100. The number of persons outside the labour force increased by 80,900 over the period. This reflects the fact, that not all sectors had opened up in Q3 2020 and those persons displaced from employment, while available for work, were more likely to be not searching for work and thus were outside the labour market.

Q3 2021Q3 2020Q3 2019
Available for work but not seeking work92.4162.896.8
Seeking work but not immediately available13.712.413.3

Persons may also want to work but are unable to do so for a number of reasons and Figure 8.2 shows the breakdown of this category for Quarter 3 of 2019 through to Q3 2021.

Q3 2021Q3 2020Q3 2019
Other reasons16.515.110.3
Care responsibilities/personal family reasons30.429.933
Own illness or disability36.134.333.1
Education or training16.920.823.6

In Q3 2021, 16.9% of person who wanted to work but were not seeking work or available for work due to education or training. This compares to 20.8% a year earlier and 23.6% in Q3 2019.  Persons with own illness or disability accounted for 36.1% of the total in Q3 2021 and this was more than the 34.3% and 33.1% recorded in both Q3 2020 and Q3 2019 respectively. Persons who had care responsibilities or personal family reasons accounted for 30.4% in Q3 2021 and this was up from the 29.9% recorded a year earlier and down from the 33.0% in Q3 2019.

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