Tuesday, 29 September 2020

Ceisteanna (277)

Richard Boyd Barrett

Ceist:

277. Deputy Richard Boyd Barrett asked the Minister for Finance the projections of unemployment for the second two quarters of 2020. [17244/20]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

My Department’s most recent macroeconomic projections were published in April of this year as part of the Stability Programme Update 2020. The labour market outlook contained within SPU 2020 was that the unemployment rate would peak at approximately 22 per cent in the second quarter of the year, before gradually declining to rates of 13.5 per cent and 10.9 per cent in the third and fourth quarters of the year.

The unemployment projections for Q3 and Q4 2020 as contained in SPU 2020 are included in the table below:

Q3 2020

Q4 2020

Unemployment levels (‘000)

328.8

266.6

Unemployment Rate (as % of Labour Force)

13.5

10.9

The situation in the labour market has changed since the spring with the CSO’s COVID-19 Adjusted monthly unemployment rate indicating a peak rate of approximately 29 per cent in April 2020, declining to an estimated 15.4 per cent in August.

My Department will shortly issue updated macroeconomic projections ahead of Budget 2021, which will include an updated outlook for the labour market and updated projections for unemployment in 2020 and 2021.