Jobless rate of 12% forecast for 2015

The unemployment rate will drop to 12% in the next two years, one of the most bullish economic forecasters has predicted.

In its latest quarterly economic outlook, Merrion Capital said yesterday that the average unemployment rate should drop to 13.9% by the end of this year — down from 14.7% at the end of 2012 — before reducing to 13% next year and 12% by the end of 2015. In its previous quarterly bulletin, Merrion said the unemployment rate would still be around 13.5% at the end of 2014.

As well as tentatively improving its jobs market outlook, Merrion remains one of the most bullish forecasters on the Irish economy, as a whole.