New research has revealed that Ireland’s December Budget could mean further job losses of 30,000 as 40,000 Irish continue to emigrate every year and unemployment remains at a steady 14.8 percent.
Nevin Economic Research Institute (Neri) researchers claim that the Irish Government will make cuts of $4.5 billion (€3.5 billion) from Ireland’s economy in December by cutting key services and income protection for lower earners according to the Press Association.
The government think-tank instead is advising that the Irish Government raise up to $1.2 billion (€1 billion) by increasing taxes on high earners.
Director of this group Tom Healy said Ireland should adopt an alternative budgetary strategy to meet the terms and targets made by the Troika of the European Commission and the International Monetary Fund and the European Central Bank.
He said: “The choice between taxes and spending is ours to make.”
“Most people have already taken enough in cuts to public services and wages along with increased charges. What we need instead is a strategy that invests in growth and begins to address the huge shortfall in taxes paid at the very top end of the income distribution.”
NERI’s latest report states that the Government is failing to introduce the stimulus needed to make jobs and added their cuts could slash 30,000 more jobs.
Currently, the unemployment figures in among Ireland’s youth stands at 30 percent, between those aged 18 to 24, according to Eurostat.
Austin Slattery, president of Chartered Accountants Ireland, told FinFacts, “Unemployment continues to grow. After five years of successive tax increases, we cannot afford the damage to the domestic economy any further with more tax hikes in 2013.”
Meanwhile, the British publication Emigrate reports that 40,000 people are leaving Ireland annually. Merrion Capital economist Alan McQuaid agreed with analysts who pointed out that emigration is the reason that Ireland’s unemployment rates have stayed so comparatively low. Currently, unemployment lies at 14.8 percent.
Also, according to the Quarterly National Household Survey, 6,300 jobs have been created over the past 12 months. Currently, 308,500 people are unemployed in Ireland while only 1,787,900 are in employment.
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Switch to the desktop site to post a comment.Seanmor | Sep 29, 2012, 12:05 PM EDT
The is no simple solution to Ireland's economic woes, but tourism always helps the Irish economy.
kaydog1 | Sep 28, 2012, 10:57 AM EDT
I have to agree with WoundedKnee and bobby - the proof of the pudding is in the eating, so just look to see the effect of large populations elsewhere to see the effect it will have on Ireland. 'rpbrown', the problem with living in a Lefty Fool's Paradise, is that the moment you go out of your own 'special world in your mind' you are back to Realityville, and that will look a lot like Dublin.
bobby | Sep 28, 2012, 08:01 AM EDT
Great comment WoundedKnee, I watched a programme on Irish TV last night about emigration and they say just over 50% of those leaving had a job in Ireland, but wanted to leave for a couple of years enjoy life in Australia with their friends. It was a choice for them. Most of them said they planned to come back to Ireland in the near future.
WoundedKnee | Sep 28, 2012, 06:11 AM EDT
Rpbrown: "The bigger a population, the more the jobs.". You're so right. India--population of more than a billion. Really high standard of living for all of them. Bangla Desh 150 million, one of the richest countries in the world. Mexico--what, over a 100 million, Egypt maybe a little less than 100 million? Both these countries provide such a good living for all citizens. You should send your idea to the govt in Dublin. The Irish have already imported a million foreigner migrants. Obviously it wasn't enough. If the Irish import say a million Chinese, a million Indians and half a million Egyptians and Bangla Deshi, these countries won't notice the loss. But everyone in Ireland will be rich!
angrypaddy | Sep 28, 2012, 04:22 AM EDT
I hope its a buget from hell,cut all benefits for non irish take 50% off all td's & ministers tax the rich @ 75% put 10euro on cigs & spirits to sober up the country and stop the irish makeing fools of themselves every where they go
rpbrown | Sep 27, 2012, 04:12 PM EDT
It is a myth that immigration creates job loss. The bigger a population, the more the jobs. We see this all the time in America. When states (which are roughly the size of Ireland) lose citizens their economy naturally shrinks (jobs are lost). When a state gains population there can be modest and sometimes large gains in employment. Think about it, when a bunch people would leave a town, a lot of business in that town can no longer receive enough revenue.
WoundedKnee | Sep 27, 2012, 02:41 PM EDT
What's the big deal? I've just been reading Yahoo Ireland and it says that 36.0000 foreign migrants immigrated to Ireland last year. Assuming the figure is accurate--I am sure it's too low--the question is posed: How come 36.000 migrants can find work in a a foreign country and the Irish can't--in their own country?
Nicomax | Sep 27, 2012, 02:27 PM EDT
If the swells who gambled on housing and commercial property loans got Ireland into this mess, then they should be first on the list to pay the penalties, not those ordinary folks now suffering the most. What will it cost them? An Audi versus a BMW, or an off-the-rack suit versus a hand-tailored one? Pay up swells, and don't worry your day to gamble will come again soon.
Seanmor | Sep 27, 2012, 10:42 AM EDT
The Dáil could achieve substantial savings if it were to reduce or eliminate wellfare benefits to foreigners, legal and illegal, who now reside in the Irish state.
bobby | Sep 27, 2012, 10:22 AM EDT
Any further joblosses in the budget this year will be in the Public sector, many of whom will retire. Also 104,175 immigrants came to Ireland so far this year from over 120 countries.