Government must focus on reducing the cost of business to assist in job creation.
ISME, Tuesday 4th October, 2016.
The monthly unemployment figures released by the CSO today (4th October) show that unemployment figures have dropped. The Association welcomes this decrease but warns against complacency and called for a reduction in business costs to allow SME’s employ more staff.
The CSO figures confirm that 172,900 people are still signing on and the standardised unemployment rate is at 7.9% for September.
Commenting on the figures ISME, CEO, Neil McDonnell said “Today’s figures reaffirm that excessive business costs are deterring new employment. Insurance costs have increased by 38% over the year, according to the CSO, while a recent report by the IMF shows Irish consumers are paying four times the EU average on insurance premiums”
“These excessive increases are unsustainable for SMEs and are hampering growth. They directly and negatively affect the ability of SME’s to hire new staff.”
In the up and coming Budget the Association called on Government to:
Reduce government influenced business costs to below the EU average.
Target capital investment in job rich infrastructure.
Encourage entrepreneurs through the tax system.
Ensure real measurable access to credit for viable SMEs.
Outsource more state sector services to SMEs.
Reform the social welfare system to make it more profitable to work, and avoid poverty traps.
Reduce black economy activity.
“This government have stated that their priority is the creation of jobs, but until it addresses the continued rise in business costs, SME’s will find it very difficult to take on new staff”.