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.