Latest unemployment and GDP data shows Government policy NOT working

The latest figures published by the CSO paint a grim picture in terms of employment and growth in Ireland.  There has been an annual decrease in employment by 33,400 since Q2 2011 and a 1.3% increase in unemployment over the same period.

This sustained and alarmingly high level unemployment combined with 0% growth in GDP in the second quarter of 2012 shows that current Government policy is not working.

• The labour force has declined by 29,500 people since Q2 2011.
• Alarmingly, this decline in the labour force is almost exclusively concentrated in the 20-24 and 25-34 age groups.
• There has been a decrease in employment of 33,400 in the same period.
• Long term unemployment now accounts for almost 60% of the total unemployment.
• There was 0% growth in Q2 2012.
• Personal expenditure, capital investment and Government expenditure all declined between Q1 and Q2 2012. 

Government continues to ignore the fact that a lack of jobs is causing the unemployment figures to remain alarmingly high, and that substantial measures are required immediately to address this issue.  The bailout process is not delivering in terms of growth, jobs and recovery.  The strategy being pursued by Government is not working and immediate additional action is required to address the unacceptable levels of unemployment and the lack of growth.

Government should start by reversing the ratio of expenditure cuts to tax increases in the forthcoming budget, taking €2 in tax increases for every €1 in expenditure cuts.

To read the CSO Quarterly National Household Survey for Q2 2012 click here.

To read the CSO Quarterly National Accounts for Q2 2012 click here.