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November 15, 2012


eamonn moran

"ICTU projected that the last budget cut nearly 30,000 jobs out of the economy while the Nevin Economic Research Institute projects that Budget 2013 could cut another 29,000 out of the economy. Don’t be surprised if unemployment remains high the Government pursues job-cutting measures."

Great article Michael but there are 2 important elements missing.
The first is the age cohort of those that have lost their Jobs. Of the 300,000 less employed today 227,000 are people in their 20's. This is the case because what both public and private employers have done is reduce employment rather than reduce real wages.
Labour costs have not come down and the public sector pay and pensions bill has only come down marginally.
By foisting all the pain on the younger generation they are cutting growth to the real economy. How can the economy grow when there are 227,000 less people in their 20's working now than 2007?
There is a very different policy pursued by governments in central and northern Europe in times of recession. They implement real pay cuts (especially to better paid workers ) instead of letting young people go, and refusing to hire them.
They protect jobs in exchange for reducing pay.
This is the most obvious and cost effective means of improving our unemployment problem but since Unions and private sector employers are dead set against it it wont happen. I am appealing again to you to talk to union leaders and make the economic argument in favor of changing policy. Even at this late stage it could make a massive difference.



I'm not sure unions would get much support from their members for reducing their pay rates!

Not that I'm being facetious or querulous about your point - I agree that youth unemployment is a serious problem in this country (not to mention elsewhere in Europe), but the Government have not been signaling any intent to divert monies 'saved' from any mooted cuts, other than to pay down odious debt.

As things stand, pay cuts in the public sector would only lead to money being taken out of the local economy.

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