Economic outlook defined by low unemployment and high inflation
The Central Bank recently outlined how the Irish economy is experiencing a generational low in unemployment along with a high in inflation at a well-attended briefing for trade unionists in Liberty Hall.
The meeting was addressed by Robert Kelly, the bank’s deputy head of financial stability.
He told the briefing that inflation was at a level that 80% of people had not experienced in their working lives. Unemployment was also at a 20-year low, which — at approximately 4% — equalled functional full employment.
Kelly highlighted some of the impacts the Covid pandemic had on the economy including an increase in workforce participation by women over 35 years of age.
He said a number of long-term issues would be key to the future direction of the economy, which included the move towards a carbon zero economy, the ageing population, and — of most immediate concern — the lack of affordable housing.
Nevin Economic Research Institute (NERI) co-director, Tom McDonnell, responded to the Central Bank presentation stating that a real wage “catch up” would be the core agenda for trade unions over the next year.
On a response to the long-term economic challenges, he called for planning to be done “strategically in a multi-annual approach”.
In pursuing such an approach, he highlighted NERI’s proposal to use the unexpectedly high corporation tax revenue to provide seed capital to set up a semi-state company or companies to deal with the housing crisis and the move to a net zero economy.
The meeting was chaired by SIPTU General Secretary, Joe Cunningham, who said it was the first time he was aware of Central Bank representatives asking for a meeting with trade unionists to outline their view of the economic position — a move which he welcomed.
Pictured above: Briefing on the economy: (From left) Central Bank Deputy Head of Financial Stability, Robert Kelly; NERI co-director, Tom McDonnell; and SIPTU General Secretary, Joe Cunningham, in Liberty Hall, Dublin, on 9th March
