Taoiseach warns Ireland will be hit by US downturn
Many analysts believe the US is already in recession, after data released last week showed 63,000 American jobs were lost in February, the worst fall in five years.
Live Register figures released here on Friday showed the number of people signing on the dole increased by 8,500 to 187,900 in February — the worst unemployment levels since 1999.
Speaking to reporters yesterday, Mr Ahern indicated that the slowdown in the housing sector was one of the key reasons for the rise in unemployment.
“Every 10,000 [fewer] houses that we build knocks 1% [economic] growth off, and that takes a fair bit of employment out... [and] revenue out too,” said Mr Ahern.
“So we’re not going to see a bounce back in that in the short term, but I think we have to try and make sure we stimulate as much confidence as we can in every industry.”
He said that events in the US would inevitably impact here, too.
“Those that were saying that the subprime [issue] would wash out of the system by last Christmas have been a long way off the mark,” he said.
“This week in the US, it seems as if they’re in for serious problems in a huge range of companies, and that’s having a knock-on effect into the world economy. And we won’t escape that.
“But I think what we have to try to do is keep the growth rates that we’ve [predicted]. Employment is still being generated, but it’s going to be a hard year. We just have to keep working.”
Labour and Sinn Féin said the Government had to do more to address job losses in the construction sector and provide train- ing for those out of work.
Meanwhile, Mr Ahern said the Government would move to restrict the availability of alcohol by the summer.
Alcohol consumption has increased by 17% over the past 10 years, and the Government believes this has contributed to the rise in public order offences.
The Government-appointed Alcohol Advisory Group is due to report back with recommendations to Justice Minister Brian Lenihan by the end of this month.
Mr Ahern indicated the Government would try to restrict the availability of alcohol in garages and supermarkets, in particular.
