EU warns of risk of 'scarring effects' from long-term unemployment for Ireland

In its latest forecast, the EU projects unemployment will average 10.7% this year, falling to 8.1% in 2022, despite strong recovery

European Commission President Ursula von der Leyen. 

Ireland faces the risk of long-term "scarring effects" from the Covid-19 economic crisis with unemployment remaining at stubbornly high levels, even as a strong recovery gets under way, the European Commission has warned. 

In its latest country-by-country forecasts, the EU projects that a recovery led by increased exports from multinationals helped by a rapidly expanding US economy, as well as pent-up consumer spending will help the economy start on its recovery path.