Rising commercial rates, insurance and wages reduce job creation
Government must prioritise business and cost-of-living reductions
ISME, the Irish Small and Medium Enterprises Association today (May 3rd) acknowledges the reduction in the unemployment rate, but highlights the damage high business costs are having on the SME sector. The Association says that if the government is to reduce unemployment to below 6% by 2020, it needs to tackle excessive business costs for SMEs. These high cost charges are impacting potential employment growth.
The CSO figures confirm 135,800 people are still signing on, and the standardised unemployment rate is at 6.2% for April, while youth unemployment is at 12.9%.
Commenting on today’s figures ISME CEO Neil McDonnell said “If the Government is to attain the Holy Grail figures of unemployment below 6%, and unemployment for long-term claimants below 2.5% by 2020, they must focus attention on reducing the costs of doing business and the cost of living”
The Association called on Government to:
Reduce government-influenced business costs to below the EU average.
Target capital investment in job-rich infrastructure.
Outsource more state sector services to SMEs.
Reform the social welfare system to make it more profitable to work, and avoid poverty traps.
“Our members state that rising commercial rates, insurance and wages are the biggest issues constraining employment growth. If the Government reduces the costs of business and living costs in the areas it can influence, the wealth of all citizens will rise, and unemployment will fall.”