Labour cost competitiveness increasing

Unemployment in Ireland is unlikely to decline substantially from its current high levels, given the weak European economy despite labour costs returning to pre-euro days, according to the OECD.

Slashing global growth forecasts in its economic review, it recommended retroactive recapitalisation of Irish banks, saying it would ease repaying sovereign debt relayed to bank support, adding its voice to those of the IMF and Ireland on the issue.

Competitiveness in labour costs in Ireland and Greece is back to 1998 levels, relative to the rest of the eurozone.