Oireachtas Joint and Select Committees

Wednesday, 24 April 2013

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Fiscal Assessment Report 2013: Discussion with Irish Fiscal Advisory Council

5:15 pm

Dr. Donal Donovan:

On the first point, as economists, individuals and human beings, all members of the Irish Fiscal Advisory Council are extremely concerned that unemployment is likely to be at such a high level. This is not a matter of different projections. The figure among all analysts is in the ballpark of between 13% and 14%, which is deeply upsetting. I am not an expert in this area - Professor Alan Barrett knows more about it than I do - but it is an extremely difficult problem given the structural unemployment that was created as a result of the collapse of the construction boom. Immigration is an additional factor because many of those who came to Ireland during the boom have remained. They are now working in certain sectors, which reduces the possibilities for Irish people who may otherwise have been in the jobs concerned. These are all factors. I understand the term "historisis" applies. Is that the correct word?

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