Disadvantaged areas in Ireland experienced significant disruptions in employment when compared to other areas during the Covid-19 pandemic, according to a recent study by the ESRI.

The research focused on the economic impacts of the pandemic on individuals residing in disadvantaged areas, as determined by the Pobal Haase Pratschke Deprivation Index, which is widely used to identify and target resources for communities facing disadvantage.

The report titled "Pandemic Unemployment and Social Disadvantage in Ireland" was carried out in collaboration with Pobal and examined the economic consequences of the pandemic, particularly the impact of the Pandemic Unemployment Payment (PUP) and its relation to deprivation across different areas.

While PUP rates were higher in deprived areas during lockdowns, they also declined more rapidly when restrictions were eased. The report suggests that this decline may be attributed to individuals in deprived areas having fewer options to return to work once restrictions were lifted.

Moreover, the high concentration of people in deprived areas working in sectors heavily impacted by lockdowns, such as retail, accommodation, and food, may have contributed to the rapid decline in unemployment.

Author of the report, Dr Adele Whelan of the ESRI, said that the findings highlight economic inequalities in the impact of the pandemic: "The higher PUP rates in more deprived areas give emphasis to the vulnerability of individuals in these areas to labour market disruptions resulting from public health restrictions.

"This is an important consideration for policymakers if future events necessitate lockdown policies," Dr Whelan said.

The researchers also noted that individuals in deprived areas were more likely to work in low-paid jobs that were vulnerable to pandemic-related restrictions and offered limited opportunities for remote work. These findings underscore the need to address the specific challenges faced by disadvantaged areas and develop targeted support measures to ensure their economic recovery and resilience in the future.

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