Ireland's Unemployment Rate hits 6.7%-FG motion in Dail

According to the CSO, Ireland's unemployment rate now stands at 6.7% of the labour force, up from 4.6% this time last year. These horrendous figures were announced today.The Live register shows a seasonally adjusted increase of 15,800 during October. Ireland's deficit stands at 7% of GNP.

An FG motion in the Dail tonight calls for the following:

"The Government must overhaul FÁS and provide a public works scheme for the unemployed. We need to restore competitiveness and support business, especially small/medium enterprises. We can do this by freezing Government charges such as rates and development levies; bringing down utility costs for electricity, gas, water and telecommunications; investing in infrastructure, in particular broadband, road and rail; cutting back red tape; reversing the hike in VAT; suspending the pay deal; consolidating labour law and abolishing anti-employment provisions such as double pay for Sunday working in the catering sector, and crucially wasting no further time in recapitalising the banks so that business, large and small, can get credit."

The deficit has not been brought under control. A mini budget is likely in July of 2009 after the local elections to arrest the slide. Further cut backs may drive the economy into a deeper recession. Meanwhile unemployment will surely hit 300,000 by mid 2009. Looks like Hobson's choice for the government. The FF/PD government could have reined in public expenditure in the run in to the 2007 General Election. Instead it permitted a growth of 25% in public expenditure over two years. It might even have won the General Election without this. Now it may pay a heavy political price.Three rocky years lie ahead if we are lucky. Hopefully the fall in interest rates and fuel prices may offer some small respite.

Ireland- Live Register breaks 200,000 for first time this decade-Unemployment rate now 5.4%

The number of people signing on the dole for unemployment rose by 47,746 in the 12 months to the end of May. This is the highest level since January 1999.

New CSO figures just issued show that when adjusted for seasonal factors, the register rose to 207,300 in May. That's up 7,600 on figures for April and over 47,000 higher than May 2007. These figures indicate a massive 30% increase in one year as Ireland dips into recession. Job losses are now spread across the whole economy, not just the housing sector.
Ireland’s unemployment rate now stands at 5.4% - a half percentage point higher than at the start of the year.

The May Exchequer Return figures show that Ireland is headed for a €3 billion shortfall in taxes - on top of an already planned-for €5 billion Government deficit this year.
There has been a €10 billion reversal in our public finances. Ireland had a €2 billion surplus in 2006. Over the last two years the Government has increased its day-to-day spending by 65%. It must attempt to curb the increase in public expenditure at a time when unemployment has breached the psychologically important 200,000 barrier. It now has the worst of all worlds. Planned cuts will be painful and will trigger a backlash.


The massive increase in public expenditure contributed to the feel good factor, which helped to propel FF to election success in 2007. It is now time for retrenchment.
The 2007 General Election was the election to lose. FG and Labour politicians will thank their lucky stars.