Wednesday, 23 October 2013

Questions (92)

Pearse Doherty

Question:

92. Deputy Pearse Doherty asked the Minister for Finance the basis for the growth projections for employment as outlined in budget 2014. [45295/13]

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Written answers (Question to Finance)

For 2013, employment growth of 1.6 per cent is projected. This takes into account outturn data for the first half of the year, which show average annual employment growth of 1.5 per cent. This growth is in both full-time and part-time employment and was broad-based across the majority of sectors in the economy. In addition, high frequency data, such as the Liver Register and survey data, suggest a continued improvement in the labour market situation in the second half of the year.

For next year and over the forecast horizon, further employment growth is projected. This is based on the assumption of GDP growth averaging 2.4 per cent per annum. The GDP growth forecast incorporates a modest positive contribution from domestic demand growth, which is labour intensive.

Finally, I would point out that macroeconomic forecasts underpinning Budget 2014 for this year and next have been endorsed independently by the Irish Fiscal Advisory Council as part of the European economic governance reforms.