Vol. 535 No. 3
53 Mr. Farrelly asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will outline the consequences of the current economic slowdown on unemployment; and if she will make a statement on the matter. [12420/01]
The Irish economy has translated strong economic growth into substantial and sustained employment growth in recent years. The rapid economic growth has resulted in the emergence of a tight labour market. This is evident from the latest figures released by the Central Statistics Office which shows an overall unemployment rate of 3.9%, with long-term unemployment at a low of 1.4% or just over 24,000 people. In addition, evidence from the recent FÁS-ESRI-Forfás survey of private sector employers indicate that 31% of employers had vacancies amounting to 77,600 or 5.8% of employment.
For 2001 the Department of Finance in the stability programme, which was published on budget day in 2000, estimated that GDP will grow by 7.4% and they forecast an increase in employment of 63,000 for 2001. In addition, in the period 2001-2003 with average annual labour force growth of 2.2% they have forecast a further fall in the unemployment rate to 3.2%.
These estimates predate the recent slowdown in the US economy and the outbreak of the foot and mouth disease. The full consequences of these events on the economy in terms of their precise impact on the levels and rate of unemployment can only be gauged over time following the release of key labour market indicators. Notwithstanding this, it is expected that the economy will continue to face labour and skill shortages for the foreseeable future. The economy continues to grow strongly, although at a somewhat more reduced rate than the record levels achieved in recent years. The vacancy data and the very low unemployment rate point to the fact that there remain opportunities for unemployed people to quickly find employment.
