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High Unemployment Irish Economy


Submitted By snake2
Words 2394
Pages 10
Economics Assignment

Module Title: Business Economics

Module Code: EC291

Lecturers Name: Dermot Gallagher

Word Count:00000

The current recession has had a huge effect on every day Ireland, the Celtic Tiger years are a distant memory. Gone are the days of living beyond on our means and there are very few people left in this country who have not felt the growing financial pressures. When a recession hits, Unemployment figures increase enormously. We agree with the assignment statement, in that we feel that unemployment will remain high over the coming years and we will strive to prove this statement correct in the following pages.

We feel that there are certain factors that will maintain Ireland’s high unemployment rates and we aim to address each of these individually and show what impact these factors are having on unemployment in Ireland. Later on in the assignment we will also suggest factors which could help reduce unemployment.

The first major issue facing Ireland’s high unemployment rate is investment. In order to invest, you need capital which at the moment is not available in this country. During the boom years, the banks were all too happy to lend money to people who don’t have any stable jobs and the regulators had allowed the bank to lend money, the regulators did not do their jobs properly because they did not analysed peoples assets and the stability of their jobs. These people who are lending huge sum of money were spending those money on luxury items like huge mortgages and loans for cars/holidays etc. The banks did not foresee the recession on the horizon and were more than happy to approve loans as they were gaining money themselves through interest. When the property bubble burst, investors started to take back their investments on Irish banks, this is because they felt that

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