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The Dropping Unemployment Rate

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There was good news this week as the latest monthly employment figures were released by the Central Statistics Office (CSO). These numbers showed that the unemployment level in Ireland has fallen to 6%. The number of individuals classified as unemployed dropped by 1800 in October bringing us the lowest figure in 9 years and the first time that unemployment has hit a level equivalent to those before the financial crisis.

In further positive news, these new figures place Ireland in an incredibly favourable position in terms of unemployment in the Eurozone itself. The Eurozone average unemployment level is 8.9%, placing Ireland almost 3% under this average. As stated in the budget announcement, experts expect that this level will continue to fall in the coming months at a steady rate following current trends. It is believed that Ireland could reach what is known as full employment (an unemployment level of 5.5% or less) in 2018.

The employment figures also showed a drop in the youth unemployment level from 14.7 to 14%. Despite these positive moves however, there is always room for concern and businesses will have new concerns to be addressed in the wake of this record low in unemployment.

Mariano Mamertino, economist with Indeed, has stated that there are still major concerns and that the Irish public should not become complacent, likewise jobseekers should not assume that there are jobs aplenty available for them.

“Although the rate of youth unemployment was down to 14 per cent in October, from 16.7 per cent a year ago, young people in Ireland are still almost three times more likely than older people to be unemployed today, with 27,000 people under the age of 25 who want a job not yet finding a role […] nearly half of those who are unemployed are long-term unemployed, and therefore have been looking for a role for at least 12 months. It is unlikely that the sectors facing the most significant skills shortages such as technology, finance and biopharmaceuticals will be hiring from these two cohorts, and are more likely to look overseas for hires who have experience and are ready to hit the ground running.”

As such, although these are of course shifts in the right direction for the Irish economy, it is wise for employers and employees alike to never take figures such as these for granted. If recent years have taught us anything it’s that in the current economic climate, things can shift dramatically in a short period of time.

Should you require any help or guidance on any business or financial matter, please do not hesitate to contact us here at EcovisDCA where we are always delighted to welcome clients both old and new.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

Unemployment Rates: How Low Can We Go?

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Over the past couple of years the signs of Ireland’s recovery following the economic crisis have been increasingly positive. One important cornerstone of recovery is of course employment. Previously, we saw a situation in which there was an increasing rate of unemployment and an increase in qualified people seeking employment on other shores or taking on unpaid work they were overqualified for on our own shores in a desperate attempt to seek stable employment. This is a situation that both employers and workers would be loath to recreate.

In recent months, the unemployment rate in Ireland has been dropping at a steady rate which shows positive movement for Ireland’s continuing recovery, even in the wake of the Brexit panic. In June, the unemployment rate continued its downward trend going from May’s figure of 6.4% to 6.3%, which is a significant positive movement over the course of one month. Over the twelve months between June 2016 and June 2017 however, this figure has dropped from 8.3% to 6.3% according to the Central Statistics Office (CSO) report.

In terms of actual figures, the unemployment rate has dropped by 42,100 people over the course of one year which is of course a move in the right direction for all. EMEA economist for Indeed, Mariano Mamertino has been quoted as saying that the Irish unemployment rate is on track to fall below 6%:

“Ireland remains on a clear trajectory for unemployment to fall below 6pc in the coming months, which bodes well in terms of the likelihood of increased consumer spending and retails sales as more people take home a weekly pay cheque.”

This, of course is encouraging news for all businesses particularly those in the retail sector who are expected to see an increase in business in the coming months. The unemployment rate in Ireland remains lower than some EU countries, but is moving in the right direction for recovery.

Naturally, the swift and continuing downward movement of the unemployment rate causes some minor concerns as Finance Minister Paschal Donohoe has stated his concern over the possibility of more jobs being available than there are workers to fill them in the future. In his opinion, the unemployment rate looks likely to fall below 5.5% which would be both an “extraordinary achievement” and a cause for concern as it would be possible Ireland would “experience capacity constraints.” It has however been stated that this is merely a potential situation and not one that is envisioned to come to pass, so we can carry on celebrating the continuing recovery of our economy

Should you require any help, guidance or information on these or any other financial and business matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to help.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY