Government must focus on cutting state controlled business costs.
Youth unemployment still too high.
The monthly unemployment figures released by the CSO today (2nd November) show that unemployment figures have dropped. The Association acknowledges this decrease but highlights the fact more could be done to reduce the unemployment figures.
The CSO figures confirm that 168,800 people are still signing on and the standardised unemployment rate is at 7.7% for October, while youth unemployment is at 15.1%.
Commenting on the figures ISME, CEO, Neil McDonnell said “Jobs growth will be slow as long as Government controlled costs continue to increase. Our latest research results on insurance show 91% of respondents have experienced increases in their insurance premiums by as much as 40%; such increases will impact negatively on the SME sector”
“These excessive premiums are totally out of kilter with EU averages; such costs are unsustainable for SMEs and are undermining the potential for growth”.
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 needs to tackle state controlled costs, until such a time, we will continue to see only marginal reductions in the numbers unemployed”.