OECD: Irish economy stabilizing

The Paris-based Organisation of Economic Cooperation and Development in its latest economic outlook published today said it believes the Irish economy is stabilizing.

However the international think-tank has warned that the country's labour market remains a source of concern.

"After one of the most severe recessions in the OECD area the Irish economy is now stabilizing

but the recession left significant scars in the labour market that will take time to heal," the report said.

"The latest OECD projections suggest that in Ireland the expected recovery is unlikely to be sufficiently vigorous to reabsorb rapidly the current high levels of unemployment," it warned.

"Indeed, there is a significant risk that the temporary hike in unemployment becomes structural and discouraged job losers grow permanently disconnected from the labour market."

The report warned that Ireland needs to create one job for every five that exist today to reach pre-crisis levels.

That amounts to about 320,000 positions.

It also warns governments planning austerity drives not to risk excluding people from the jobs market for too long.

The report goes on to advise governments to target their jobs policies on the most disadvantaged groups - and those with few or no skills.

It says that unemployment is particularly acute in economies where a "boom-bust" pattern in the housing market has played a role - singling out Ireland, Spain and the US.

More on this topic

NTMA recession warning: Let’s not fear the probableNTMA recession warning: Let’s not fear the probable

Eddie Hobbs: Is a recession looming - that's the multi billion dollar question?Eddie Hobbs: Is a recession looming - that's the multi billion dollar question?

Young mothers depressed due to recessionYoung mothers depressed due to recession

Over one in five face ‘enforced deprivation’ - despite economic recoveryOver one in five face ‘enforced deprivation’ - despite economic recovery


More in this Section

Burke confident Cork office vandalism not connect to theft of election postersBurke confident Cork office vandalism not connect to theft of election posters

Drug gangs targeting secondary schools in Limerick, claims FF election candidateDrug gangs targeting secondary schools in Limerick, claims FF election candidate

Gardaí refuse to comment as Michael Healy-Rae claims he had assurances from 'senior garda' on election fundraising permitGardaí refuse to comment as Michael Healy-Rae claims he had assurances from 'senior garda' on election fundraising permit

Dublin Rape Crisis Centre disappointed at delay in specifying 'revenge porn' as offence as judge grants protection order to victimDublin Rape Crisis Centre disappointed at delay in specifying 'revenge porn' as offence as judge grants protection order to victim


Lifestyle

Helen O’Callaghan looks at the autism-friendly National GalleryNational Gallery is a leader in autism inclusion

The Music Minds event in Co Clare provided interesting discussions and some great music, writes Ellie O’ByrneMusic Minds gets political in Co Clare

In conversation with Hilary Fennell.This Much I Know: Food blogger, Holly White

Eve Kelliher consults US decluttering guru Dana K. White who has advice on where to start if you’re aiming for interiors minimalism this year.Secret to decluttering success? Adjust to the life you're living now

More From The Irish Examiner