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The Economy

SIPTU economist warns those calling for yet more wage cuts in light of rising unemployment to be careful what they wish

Date Released: 01 Jul 2009

SIPTU’s Chief Economist and Head of Research Manus O’Riordan has warned those calling for more wage cuts in the light of today’s rising unemployment figures that this will only drive the economy into deeper recession. Mr O'Riordan said that lobby groups and commentators who use the continuing unemployment crisis to repeat their now ritual calls for wage rates to be slashed were persisting in the pursuit of bankrupt policies. “They should be more careful what they wish for.

“It is now five months since I specifically warned that the slump in consumption due to attacks on living standards would see unemployment reach half a million this year”, he said. “Sadly, this is now coming about.

“Yesterday's GDP data showed that the depth of the Irish recession is now being driven by a nine per cent slump in personal consumption, which accounts for half of national output. Those in the economic profession and the media who want to intensify the slump by still more cuts in living standards have a lot to answer for”, he concluded.





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