The lowest February unemployment figures for 16 years is reason enough for the Government to trumpet its success. But the 500 job losses in assembly-style industries announced during the week, along with the strictures of the Economic and Social Research Institute concerning inflationary wage pressures, should sound a note of caution. That said, the number of people at work continues to grow at a much faster rate than expected. The loss of jobs during the week was balanced by announcements concerning new, high-tech industry. And the Government's unemployment target of 7 per cent has been exceeded eighteen months ahead of schedule.
Looking back at live register figures provides an insight into the roller-coaster ride experienced by the Irish economy during the past decade. Ten years ago, unemployment stood at 241,522; it grew rapidly to 293,453 five years ago and has since fallen to 207,611. Economic growth has not been a slow and measured force arising from careful government planning, but an explosive phenomenon that took most economists and politicians by surprise. While the economy and the number of people at work grew rapidly as the so-called Celtic Tiger got into its stride, the impact on long-term unemployment took longer to be felt. At this stage, however, the rate of reduction in unemployment levels is actually accelerating. In the past twelve months there was a fall of 34,160 in the number of persons on the live register and the figure came to 6,403 in the last month alone.
The statistics make a powerful case for the Government's planned regionalisation of the State. Economic development, at least in terms of falling unemployment levels, is clearly concentrated in the East and South of the country. During the past twelve months, Dublin has seen the level of unemployment fall by 20 per cent. And the figures range from 16.5 per cent in the South West, to 12 per cent in the Mid-East and Mid-West and 11 per cent in the South East. Lagging behind, with falls of 7, 8 and 9 per cent in unemployment levels are the three regions designated for Objective I status, the Border, Midlands and West.
The rapid fall in unemployment levels represents a considerable economic boost for the State. And behind the cold statistics, thousands of families and individuals are facing into a brighter and more comfortable future. In sheer money terms, the annual drop of 34,000 in unemployment levels would save the Government more than £1.15 billion, gross, in a year. When taxes are taken into account, the benefit to the State would be even greater. No wonder the Exchequer is bulging with money.
Given the continuing strong growth in the economy, the Government must move rapidly and decisively to address the infrastructural deficit that is clogging our roads, over-burdening the rail system, driving up house prices, polluting our waters and generating a worrying economic imbalance in favour of Dublin. Whatever structural and cohesion funding is secured from Brussels for the period 2000-2006, will fall far short of the urgent needs of society. The Government should expand capital spending as a priority if rapid economic growth is to be sustained.