Government Policy Destroying Jobs

5 Aug 2010

Government policies are deflating the economy throwing more and more out of work, closing businesses and pushing up emigration rates, Paul Sweeney, Economic Advisor to Irish Congress of Trade Unions said today.

The rise of 34,403 in the live register in the year to July would have been far higher were not so many people forced to either leave the country or stay out of the workforce.

The 467,000 people on the live register is a shocking indictment of the Government's current economic policies.

There are now over 270,000 less people at work than in 2007. They are no longer paying taxes income taxes and their spending power is greatly reduced. This is reflected in the recent fall in income tax receipts and in retail sales.

Mr Sweeney said it was nonsensical to talk about the economy 'stabilising', let alone recovering, when:

• unemployment has risen to 13.7%;
• long term unemployment has doubled to 5.2%;
• youth unemployment is soaring;
• at least 140,000 will emigrate this year and next

Mr Sweeney said that when there is such clear evidence that policies are not working, it is time to change and not to keep digging. Further deep cuts in the comibng December Budget and a panic reaction - like selling off valuable assets throigh privatisation - will only exacerbate the crisis.