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Central Bank Quarterly Bulletin 3 2020

Guest post by Stephen Byrne, Central Bank of Ireland

Today the Bank published its third Quarterly Bulletin of the year. The report contains a detailed overview of developments in the economy since the publication of last Bulletin in early April as well as our latest macroeconomic forecasts out to 2022.

Given the scale of uncertainty surrounding the economic impact of Covid-19, two different scenarios for the economic outlook are outlined in the Bulletin (see featured image above).

In the “baseline” scenario, the economy reopens in line with the Government’s phased plan, allowing for a rebound in economic activity in the second half of the year. Some containment measures would remain in place meaning that activity would be constrained in some sectors for a longer period. Beyond the initial rebound, recovery is expected to be gradual, in line with a slow unwinding of precautionary behaviour as the effects of the shock on consumers and businesses lingers. The unemployment rate is set to decline from its second quarter peak of about 25 per cent as the year progresses and is projected be around half that level by the end of this year, before averaging just over 9 per cent next year and 7 per cent in 2022.

The baseline scenario sees output recovering to its pre-crisis level by 2022. However, the level of activity will be significantly below where it would have been had the economy grown in line with expectations before the outbreak of the pandemic.

In the “severe” scenario, the strict lockdown period is assumed to have a more damaging impact on economic activity and is not successful in effectively containing the virus. Stringent containment measures would remain in place, or would be re-instated, albeit not as severe as before, based on an assumption that there would be a resurgence of the virus at some point over the next year. In this scenario, there is a subdued economic recovery with a larger permanent loss of output. Unemployment remains higher for longer in this scenario and would average just below 17 per cent in 2020, while consumer spending is projected to fall by around 14 per cent and GDP by over 13 per cent this year. In this scenario, the projected recovery in growth in 2021 and 2022 would not offset the loss of output this year, leaving the level of GDP in 2022 about 5 per cent below its pre-crisis level.

Both of these scenarios assume that a Free trade agreement in goods between the UK and the EU, with no tariffs and quotas on goods, takes effect in January 2021. If such an agreement is not reached, then the EU and the UK would move to trading on WTO terms from January 2021. Box D of the Bulletin discusses the implications of such an outcome.

The bulletin also contains analysis of the impact of Covid-19 on debt dynamics and sustainability, as well as a detailed examination of the regional labour market impacts of the pandemic.

Finally, an accompanying signed article explores alternative long-term recovery paths for the economy and assesses the impact of fiscal and monetary policy supports. The Article considers how hysteresis – or scarring ­­– effects could influence the pace and nature of the recovery. The paper shows that, as a highly open economy, Ireland benefits from the positive effects of monetary and fiscal policy measures implemented abroad. The assessment of the combined effects of domestic and international policy supports indicates that the actions will help to meaningfully reduce the scale of the output loss in Ireland from the pandemic.

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Central Bank event: Labour Markets over the Business Cycle

The Central Bank is hosting a one-day conference on “Labour Markets over the Business Cycle” on 11 December in Dame Street (programme below). There is a limited number of places still available. If you wish to attend, please email by 9 December. Please note that places will be allocated strictly on a first-come-first-served basis.

Labour Market Adjustment over the Business Cycle

A one-day conference at the Central Bank of Ireland

11 December 2014
Liffey room, Dame Street, Dublin 2

email to confirm attendance by 9 December



11 December  
08:45 Registration and coffee
09:00 Opening remarks – “Prospects and Challenges for the Irish Labour Market 2015 – 2020”. John Flynn (Head of Irish Economic Analysis Division, Central Bank of Ireland).
Session 1 


Cycles in employment, unemployment and wages
  Labour market transitions in Ireland – Thomas Conefrey (Irish Fiscal Advisory Council)
  Wage Cyclicality – Mario Izquierdo (Banco de Espana)


11:00 Coffee & tea break
Session 2
Labour market attachment
  Are the marginally attached unemployed or inactive? – Martina Lawless (CBI/ESRI)
  Sources of wage losses of displaced workers – Pedro Portugal (Banco de Portugal)
13:00 – 14:00 Lunch
Session 3
14:00 – 15:45
Wage flexibility
  Wage flexibility in Ireland – Olive Sweetman (Maynooth University)
  Wage Setting – Flexibility and Rigidity in the UK since 1975 – Jennifer Smith (University of Warwick)


Session 4


Labour market adjustment during and after the crisis: the role of policies and institutions
  Pedro Martins (Queen Mary University of London)
  Questions & discussion


  Closing remarks

Conference Ends

Economic Performance Uncategorized Unemployment

Some Very Positive Labour Market Numbers

The results of the Quarter 4 2013 National Household Survey are available here.
The year-on-year increase in the numbers at work of 3.3% is all the more remarkable in view of the continuing decline in public sector employment.
The overall unemployment rate (seasonally adjusted) fell from 12.7% to 12.1%, and the long-term rate from 8.2% to 7.2%.

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Irish Economic Policy Conference 2014: Economic Policy after the Bailout

Organised jointly by the ESRI, Dublin Economic Workshop, UL, and UCD’s Geary Institute, this year’s policy conference (see previous years here and here) will be on the theme of economic policy after the bailout. This conference brings policy makers, politicians, civil servants and academics together to address this question of national importance. The venue will be the Institute of Bankers in the IFSC. (Click here for a map).

Date: 31st January 2013

Venue: Institute of Bankers, IFSC


9:15 – 10:45: Plenary: The Impact of the Crisis on Industrial Relations

Chair: Aedín Doris (NUI Maynooth)

  • Kieran Mulvey (Labour Relations Commission) Prospects for Pay and Industrial Relations in the Irish Economy
  • Shay Cody (IMPACT Trade Union) “The impact of the crisis on industrial relations – a public service focus”
  • Michelle O’Sullivan/Tom Turner (University of Limerick) “The Crisis and Implications for Precarious Employment’”

10.45-11.15: Coffee Break

11:15 – 12:45: 2A. Migration and the Labour Market

Chair: Philip O’Connell (UCD Geary Institute)

  • Piaras MacÉinrí (UCC) ‘Beyond the choice v constraint debate: some key findings from a recent representative survey on emigration’
  • Peter Muhlau (TCD) “Social ties and the labour market integration of Polish migrants in Ireland and Germany”
  • Alan Barrett (ESRI & TCD) and Irene Mosca (TCD) “The impact of an adult child’s emigration on the mental health of an older parent”

2B. Economics: Teaching and Practice

Chair: Ronan Gallagher (Dept of Public Expenditure and Reform)

  • Brian Lucey (TCD): “Finance Education Before and After the Crash”
  • Liam Delaney (Stirling): “Graduate Economics Education”
  • Jeffrey Egan (McGraw-Hill Education) “The commercial interest in Third Level Education”

12:45 – 1:45: Lunch Break

1:45 – 3:15: 3A. Health and Recovery

Chair: Alex White, TD, Minister of State

  • David Madden (UCD) “Health and Wealth on the Roller-Coaster: Ireland 2003-2011”
  • Charles Normand TCD) and Anne Nolan (TCD & ESRI) “The impact of the economic crisis on health and the health system in Ireland”
  • Paul Gorecki (ESRI) ‘Pricing Pharmaceuticals: Has Public Policy Delivered?”

3B. Fiscal Policy

Chair: Stephen Donnelly TD

  • Seamus Coffey (UCC) “The continuing constraints on Irish fiscal policy”
  • Diarmuid Smyth (IFAC) ‘IFAC: Formative years and the future’
  • Rory O’Farrell, (NERI) “Supplying solutions in demanding times: the effects of various fiscal measures”

3:15 – 3:30: Coffee Break

3:30 – 5:00: Plenary: Debt, Default and Banking System Design

Chair: Fiona Muldoon (Central Bank of Ireland)

  • Gregory Connor (NUI Maynooth) “An Economist’s Perspective on the Quality of Irish Bank Assets”
  • Kieran McQuinn and Yvonne McCarthy (Central Bank of Ireland) “Credit conditions in a boom and bust property market”
  • Colm McCarthy “Designing a Banking System for Economic Recovery”
  • Ronan Lyons (TCD) “Household expectations and the housing market: from bust to boom???”

This conference receives no funding, so we have to charge to cover expenses like room hire, tea and coffee. The registration fee is €20, but free for students. Please click here or on the link below to pay the fee, then register by attaching your payment confirmation to an e-mail with your name and affiliation to [Block bookings can be made by purchasing the required number of registrations and then sending the list of names to]

Please click here to pay the registration fee.

Economic Performance Unemployment

QHNS Q3 2013

The CSO have published the latest Quarterly National Household Survey: Press release and Main release.

Employment is up 58,000 in the year.  Full-time employment accounts 53,500 of that.  Concerns about the distribution of the numbers employed into each sector remain (particularly the Agriculture, Forestry and Fishing sector).  There was a 30,200 increase in the numbers self-employed and a 27,300 increase in the number of employees.

Unemployment using the QNHS is now at 282,900, a drop of 41,700 over the year.  Self-classified unemployment is at 326,700 down 45,000 in the last 12 months.

The unemployment rate was 13.0 percent in Q3 (seasonally adjusted 12.8 percent).  Using the Live Register the CSO project that the SA rate in October was 12.6 percent.

The labour force has increased by 16,000 in the same time with a 0.5pp annual increase in the participation rate to 60.7 percent.

The number unemployed for one year or longer fell 27,800 of which 25,800 were males.  The long-term unemployment rate is 7.6 percent (8.9 percent a year ago).

Youth unemployment (15-24) has fallen from 74,000 to 60,400 with the youth unemployment rate at 26.5 percent.  The youth unemployment ratio is 10.3 percent. 

There is lots more detail in the release.  The Earnings and Labour Costs Survey for Q3 has also been released.

Social conditions Uncategorized Unemployment

Suicide and the Recession – again

Seán Ó Riain’s post and links to the recent British Medical Journal article on suicide and unemployment call for an extended comment, although, as Brian Lucey points out, the topic was discussed in a recent post.

The estimates of the number of suicides attributable to the recession in the BMJ article are based on the trend in suicide rates over the eight years 2000 to 2007 pooled over 54 countries compared with the rates recorded in the years 2008, 2009, and 2010. The discrepancies between the actual and extrapolated rates were used to infer the impact of unemployment: The authors summarize their approach as follows:

To examine whether suicide rates rose more in countries with worse economic downturns, we used Spearman’s correlation coefficients to investigate the association between suicide rate ratios in 2009 and percentage point changes in unemployment rates between 2007 (the baseline year) and 2009 (unemployment rates (in %) in 2009 minus unemployment rates (in %) in 2007 across study countries.

As may be seen from Figure 1 the Irish suicide rate hardly changed between 2007 and 2010 – rising from 10.5 to 10.9  When deaths “due to external causes of undetermined intent” (a category generally viewed as referring predominantly to suicides) are included, the rate actually fell from 13.2 in 2007 to 12.7 in 2010. Looking beyond 2010, using preliminary data based on year of registration, both measures of suicide were stable in 2011 and 2012.

Taking a long-run perspective, the econometric evidence contained in Walsh and Walsh, 2011 shows that the Irish suicide rate has been only weakly correlated with the unemployment rate. Other factors seem to have been at work.  For example, the suicide rate rose sharply during the period of falling unemployment in the second half of the 1990s, which coincided with a surge in per capita alcohol consumption. The suicide rate declined during the first half of the noughties – particularly among younger males – coinciding with the start of a steady decline in alcohol consumption.

The following Figure shows the suicide and unemployment rates since the 1960s and brings out the lack of correlation between them. In particular, the recent surge in unemployment seems to have had a surprisingly weak impact on the suicide rate.
While it might be claimed – as is done in the BMJ article – that had unemployment not risen, the suicide rate would have fallen below its present level, but extending the earlier econometric work down to 2012 suggests that the influence of the unemployment rate on suicides has remained relatively weak and confined to males aged 35-54. These age groups account for about 30% of all suicides. Suicide among males in other age groups and among females, which account for 70% of the total, do not appear to be significantly influenced by the unemployment rate.

We must be careful not to attribute too much of our current suicide problem to the downturn in the economy and / or the measures that have been taken to correct our fiscal imbalances.

Economic Performance Unemployment

Good News on the Labour Market

The CSO released the results of the Quarterly National Household Survey for Quarter 2 2013 this morning, together with their population estimates for April of this year and the components of population change over the previous twelve months.

The news is mostly positive, showing clear evidence of a recovering labour market.

The level of employment has risen, with full-time employment up for the first time since 2008. Private sector employment is growing fairly strongly, offsetting the decline in public sector numbers.

Although still very high, overall unemployment is down and long-term unemployment has fallen as a proportion of the total.

The population increased only marginally between April 2012 and April 2013. The slowdown in population growth was due to (i) the continued high level of net emigration, with an increase in the outflow of Irish nationals, and (ii) a sharp fall in natural increase, due to the drop of almost 5% in the number of births.

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Successful Completion of Tenth Review of Troika Programme

In a statement issued at the end of this Review yesterday, we were given the by-now familiar plaudits for achieving various benchmarks. Going forward, ‘strict implementation’ of this year’s budgetary targets is urged.

The gravity of the unemployment situation is acknowledged. ‘Swift action needed to deal with unemployment’ the newspaper headlines proclaimed. The onus for this is placed on the Irish government and a familiar list of policies proposed, including for example ‘the need for enhanced engagement with the unemployed and the opening up of competition in sheltered sectors like legal services’.

I wonder how much our readers think increased competition between lawyers will contribute to lowering our unemployment rate.

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ESRI QEC Research Notes

Last week the latest ESRI Quarterly Economic Commentary was published. It includes 5 research notes including one by myself on the regional dimension of the unemployment crisis.

While there is a lot of discussion about unemployment, the differences across regions have not received much attention. The note shows that the differences are significant. It also shows that things would look a lot worse if it had not been for a drop in labour force participation – in the Border region the unemployment rate could have reached 27%. Not surprisingly a sharp drop in employment is the major cause of the increase in unemployment, but a look at the sectoral breakdown of employment changes gives some interesting results. Firstly, construction employment appears to have contracted quite uniformly across the country. Secondly, employment in education and health actually grew. Thirdly, there are some interesting differences across the regions with respect to other sectors. For example, manufacturing declined much more in Dublin than elsewhere. Most importantly the analysis suggests that the underlying factors that are responsible for the differences in unemployment rates across the regions are very persistent but were hidden during the boom. You can expect some more analysis on this in the near future.

The other notes are:
Tax and Taxable Capacity: Ireland in Comparative Perspective
Comparing Public and Private Sector Pay in Ireland: Size Matters
Trends in Consumption since the Crisis
Revisions to Population, Migration and the Labour Force, 2007-2011

EMU Unemployment

Eurozone unemployment

Just like a year ago, we are hearing a lot of guff about how the euro crisis is over, and just like a year ago the people I talk to in Brussels are becoming increasingly alarmed by the complacency of the European establishment. It does seem as though the only thing that makes Europe’s useless political class worry is the risk of imminent cardiac arrest, as proxied by bond yields and the like; but the cancer of unemployment will do just as much damage if allowed to progress unchecked.

Here are the latest Eurozone unemployment statistics. Just because we are becoming used to this sort of news does not mean that they are even remotely acceptable. They are grim.

There are certain costs that are obviously not worth paying to keep the EMU experiment going. One is a dilution of the continent’s democratic traditions. Another is unemployment rates of the sort we are seeing in Spain and Greece. No doubt crocodile tears will be shed by supporters of status quo macroeconomic policies, but such responses are no longer acceptable. EMU supporters, and €-sceptics who are worried about the costs of an EMU break-up, now have to start being very concrete in terms of proposing Eurozone economic policies, including short run monetary and fiscal policies, that can start reversing these trends in 2013. (A group of us tried to do so here, for example.) And then we need to see such policies being implemented, quickly.

You have to live through times like this to really appreciate the wisdom of Keynes’ famous line about the long run.

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Measuring Youth Unemployment

The problem of youth unemployment has rightly been highlighted as one of the major issues facing European countries today.  The newspapers have fastened on the shocking statistic that the unemployment rate among Spaniards and Greeks aged 15 – 25 is about 50 per cent, while the rate for the EU as a whole is about 20 per cent.  These are alarming numbers, but they are also somewhat misleading.

As Stephen Hill pointed out in a piece in the Financial Times on June 24th, the unemployment rate may not be the best measure of labour market conditions among young people who have opportunities to stay in the educational and training systems rather than entering a depressed labour market.  For this reason, an alternative measure, the unemployment ratio, has gained currency.

The conventional unemployment rate is  the numbers ‘unemployed’ as a proportion of the ‘labour force’.  The ‘labour force’ is the sum of the employed and unemployed.  The ‘unemployed’ are those actively seeking work, but not at work. (For young people it is of interest to break unemployment down into those ‘looking for first regular job’ and those who are ‘unemployed having lost or given up previous job’.)

The problem with using the  unemployment rate to measure labour market conditions among young people is that the denominator does not include those who are in the educational system or on full-time training courses.  During a recession, the higher the proportion of a youth cohort that stays on in school or college or in training, the smaller the labour force and the higher the unemployment rate. This is perverse.

By using the whole cohort as the denominator, the unemployment ratio avoids this pitfall and it may be argued that it therefore provides a clearer picture of hardship being caused by the lack of employment. (Of course this is subject to the reservation that increased educational participation may involve putting square pegs in round holes, with some young people taking courses in which they have no interest.)

The limitations of the unemployment rate as a measure of labour market conditions among the youth population is acknowledged by Eurostat, who now publish both the ratio and the rate for the population aged 15-24.  (Their recent figures for Ireland for 2011 are low and may not reflect the latest Census returns.)

The distinction between the unemployment rate and ratio certainly matters.  Data in the recently-released 2011 Census of Population volume This is Ireland Part 2 show the population classified by ‘principal economic status’. These reveal an unemployment rate of 38.7 per cent among the population aged 15-24 compared with an unemployment ratio of 14.2 per cent. While the ratio of 14.2 per cent gives no grounds for complacency, it is less alarming than the headline rate of almost 40 per cent.

It is perhaps even more important to note that the unemployment ratio has not risen as dramatically as the unemployment rate since the onset of the recession in 2008. The Figure displays the three concepts based on the 2006 and 2011 Census data.

(The Table at the end provides more details.)

Whereas the unemployment rate rose by 140% the ratio rose by 90%.  Thus, the rate tends to overstate both the level of unemployment among young people and the rate at which it has risen.

It may, however, be objected that the unemployment ratio includes all those who are not in the labour force in the denominator but excludes discouraged workers and similar forms of disguised unemployment from the numerator.  This bias would certainly be significant among older workers, who are more likely to cease looking for work and to drop out of the labour force because no jobs are available.  Its effect on the youth data, however, is smaller because labour force categories other than ‘employed’, ‘student, and ‘unemployed’ are relatively unimportant among the young.  In 2011 less than 2 per cent of population aged 15- 24 are classified as ‘looking after home/family’!

None the less, to take account of ‘dsicouraged workers’ it is worth looking at another concept that has gained some currency .  This is the NEET ratio. It refers to the proportion of the population that is Not in Employment, Education or Training.  To calculate this ratio for Ireland I have assumed that those in ‘(full-time) training’ are classified as ‘students’ in the Census.  The resulting ratio must, by definition, fall between the unemployment ratio and the unemployment rate.  From the Figure we can see that it lies closer to the unemployment ratio. Moreover, it has risen less rapidly than either the unemployment rate or ratio.   In 2011 the NEET ratio was ‘only’ 65 per cent above it 2006 level.

It is striking that the widely-used unemployment rate is so much higher, and has risen so much more, than the alternative – and arguably better – measures of the situation in the youth labour market.

The reason why the unemployment rate overstates both the level and rise in Irish youth unemployment is the high level of educational participation and its marked increase over the past five years. The proportion of the 15-24 year-old population in the educational system rose from 50.1 per cent in 2006 to 60.5 per cent in 2011.  While not all of the additional years of schooling will be as productive as we would wish, being in the educational system is less wasteful than being unemployed.  This aspect of the adjustment to the present crisis is concealed by the conventional youth unemployment rate.

None the less, we cannot lose sight of the collapse of employment among the youth population.  In 2006 39.5 per cent of the population aged 15-24 was in employment.  By 2011 this percentage had fallen to 22.5.  Among those aged 20-24 the rate declined from 60.0 to 39.0.  While the youth unemployment crisis may not be as severe as suggested by the headline youth unemployment rate, it is a crisis.


More evidence of Irish success

The CSO press release on the latest Irish employment and unemployment statistics is here. They are pretty terrible.

As Colm has frequently pointed out, it is very difficult to credibly ask for a new deal on bank-related debt when you are simultaneously telling the people in charge in Brussels and Frankfurt how well we are doing (i.e. how successfully their strategy has been working in Ireland).

Perhaps it’s time to ignore Johnny Mercer and start accentuating the negative, even at the risk of a little pandemonium?

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Data journalism handbook

Via the excellent Flowing data, an interesting free guidebook: the Data Journalism Handbook.

Worth a look, including for the link to a rather good interactive data visualisation from the New York Times of 2009 “The Jobless Rate for People Like You“.

EMU Unemployment


The news that Spanish unemployment is now at 24.4% deserves a thread. It is the latest reminder of the complete and utter failure of the Eurozone’s absurd strategy of generalized, undifferentiated austerity for all, simultaneously. What is so frustrating is that it was obvious in 2010 that this would be the result, which is why some of us objected at the time to what was happening: you didn’t have to be a genius to figure it out. I don’t see any way that the Eurozone will survive in its current form unless the macroeconomic policy mix changes, and I’m not sure it will change, even if M Hollande gets elected.


Action plan for jobs

The “2012 Action plan for jobs” is now available on the DJEI website. The press release is here

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Tax Breaks for Job Creators

Stephen Collins reports that ‘project champions’ and their teams will be given large tax breaks to incentivize them to come to Ireland to set up projects that entail ‘new product development’.

Is this a good idea? Anyone know of any empirical evidence on the effectiveness of these types of tax breaks (assuming that they exist elsewhere)?


Unemployment session from Friday

Below are links to the unemployment session materials so that this thread can be used for thoughts people have on the contents of the session.


Chair: Minister Joan Burton T.D.

David Bell (Stirling)
Unemployment in the Great Recession: More Misery for the Young?

Aedin Doris (NUIM)
Employment and Unemployment: What do Sectoral and Demographic Patterns Tell Us?

Philip O’Connell (ESRI)
The Impact of Training Programme Type and Duration on the Employment Chances of the Unemployed in Ireland


The latest employment figures

“So, we hear Ireland is recovering”, a French friend said to me last night.

(Mind you, they said something similar in the summer of 2010. Our government has an incentive to sell the Irish good news story, and “Europe” has an incentive to buy it.)

So, here are the latest employment data, reporting the largest seasonally adjusted quarterly fall in employment in two years, and which surely deserve a thread of their own.

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‘Tis the Season to be ….

… happy!

So I thought I would share my thoughts on how the Irish are faring on this front.


Unemployment in Ireland

I did a video session on yesterday on unemployment. It is available here A blogpost with various links to material discussed during the session is here The session went through: the extent of unemployment in Ireland; consequences of long-run unemployment; current government responses; and potential responses.

The format is an interesting one and worth thinking about for others here as it gives more time to work through topics than is usually possible on television and radio. Joe Garde on sets them up. Ronan Lyons, Stephen Kinsella and others have done sessions on it so far.

EMU Unemployment

Krugman on internal devaluations

To Paul Krugman’s recent posts on Ireland and the Baltics, I would add two points.

1. Ireland’s quarterly GDP data are notoriously volatile.

2. Ireland is a small, open economy, and it is by common consent a relatively flexible economy. It is also an economy in which labour is both inwardly and outwardly mobile. And yet unemployment here is now running at 14.5%. So do we really think that the Irish experience can be used to argue that the austerity/internal devaluation medicine is appropriate for countries like Greece or Italy?

EMU Unemployment

The latest unemployment and emigration data

It would be wrong not to have a thread on the latest unemployment and emigration data.

Together with the recent data on our consumer price level, relative to the rest of the EU, they show (as if there were any doubt on the matter) that even in small, open, flexible Ireland, the current poster boy for the EU’s preferred austerity/internal devaluation strategy, wage and price flexibility — while impressive — isn’t what certain macro theories assume it to be.


Quarterly National Household Survey, 2011:Q1

The QNHS release is here.   Some analysis of the figures from the Irish Times here.  Overall, some modest good news.   I would say Ronnie O’Toole has it about right,

“This does not indicate that unemployment is on a downward path, and only reverses the surprise rise in the fourth quarter,” said National Irish Bank’s chief economist Dr Ronnie O’Toole.

“However, it does indicate that the labour market is very close to stabilising, with half of all industry categories showing year-on-year increases in employment. These increases, however, were not large enough to offset the continued loss of jobs in hospitality and construction.”

Fiscal Policy Unemployment

Contractionary austerity watch — Greek edition

These are really awful numbers (H/T Eurointelligence).


IBEC Jobs Submission

The IBEC submission for next weeks “jobs budget” is available at this link. Details include suggestions on extra data collection, changes to the FIS scheme, national internship programmes, sectoral-specific recommendations in areas like energy and farming, change to bankruptcy laws and a loan guarantee scheme.

Banking Crisis Unemployment

Live register figures

The Live Register figures for March are out.

The standardised unemployment rate in March was 14.7%, unchanged from February. This compares with the latest seasonally adjusted unemployment rate of 14.7% from the Quarterly National Household Survey in the fourth quarter of 2010, and an annual average of 13.6% for 2010.

By way of comparison, the baseline forecast for 2011 unemployment in the Central Bank’s PCAR macroeconomic scenario is 13.4%. In the adverse scenario, this rises to 14.9%. We are almost there, and it is only March.

At least the Central Bank scenarios got the 2010 unemployment numbers right! This contrasts with their 2010 GDP numbers, as Dan O’Brien pointed out earlier in the week.

(And I admit that I am baffled by an adverse house price scenario that is not robust to the ‘What if Morgan Kelly is right?’ objection.)