Cost of employing staff still too high, say retailers

The Government is stunting economic growth because of the cost of employing staff, a group representing retailers has warned.

Retail Excellence Ireland says that, as a whole, employers here have paid in excess of €1bn in employment costs since the start of the financial crisis.

The group is recommending that the rate of PRSI paid by employers be reduced, and is calling for the reintroduction of the redundancy rebate.

Deputy CEO of Retail Excellence Ireland Sean Murphy said that the Department of Social Protection needs to examine the wider repercussions of some of the costs associated with employing staff.

"While we're seeing recuperation and recovery, it's tentative, and it is not as strong as it could have been, if some of these costs had not been put on the domestic economy in particular

"We would like the Department of Social Protection in particular to be mindful of these costs, and why they are pushing their job creation schemes, … in the absence of a positive macroeconomic environment that's supportive of jobs, they will not be successful."