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ESRI report signals 'back to the future' jobs crisis

Issued : Wednesday 29 April, 2009

Today's economic message is that the Irish economy has not yet bottomed out and that unemployment will continue to escalate at an alarming rate.

The publication of the ESRI's Quarterly Economic Commentary today forecasts an average unemployment rate nearing 17% for 2010. GNP is set to slide by over 13% between 2008 and 2010. This is depression territory.

Irish unemployment peaked in 1985 at 17.3%. If the ESRI forecasts prove to be accurate, we could see unemployment breaching even this level by the end of next year recalling our worst memories of the 1980's.

Unemployment is cutting a swathe of social destruction across the country. Every community and every sector of the economy has been affected. Every family knows somebody who has lost a job. Some families have lost two incomes making ends meet next to impossible.

The Government's reliance on an unreformed, unfit-for-purpose FAS during the current crisis is inexplicable to the tens of thousands trying to up-skill and access further education.

The recent emergency budget was devoid of any serious action to arrest these alarming job losses. The Government must urgently put in place a National Jobs Plan.

Elements of a jobs plan proposed by the Labour Party include:
- Setting up a Graduate & Apprentice Placement scheme so that people can keep their social welfare payments while gaining vital work experience;
- Cutting Employer's PRSI for the first 18 months of employment to encourage employers to create jobs for people on the dole;
- Introducing an 'Earn and Learn' scheme for people on short-time work weeks, and investing in skills and training (including making use of EU funding).