A nation at work - Let’s ensure the good times go on

YESTERDAY’S employment figures from the Central Statistics Office are a great source of reassurance, possibly even an occasion for celebration.

In Ireland there are 2,140,900 people in work out of a population of 4,239,848: put simply, more than half of the people living here are paid to work.

The achievement can be seen in its real context by considering the size of our labour force — it stands at 2,194,100.

This is one of the real, substantial indicators of the level of economic activity in our society. The figures support the Taoiseach’s recurring assertion that the basic criteria that define our economy are in fine fettle and that unless we do something really silly we can expect to enjoy continued growth, albeit at a slower pace.

Twenty years ago only 1,110,500 people worked in our economy; in 1997, that figure stood at 1,379,300. The respective labour forces were 1,336,500 and 1,539,000.

More than three-quarters of a million new jobs in a decade in such a small country is tremendous growth.

These are impressive figures and represent an economic revolution unprecedented in our history.

The challenge is to sustain it.

The confidence the employment figures inspire can only be enhanced by Central Bank assurances this week that Irish banks have no significant, direct exposure to the subprime mortgage disaster still unfolding in the United States.

Underpinning what should be an air of vigorous optimism is the statement from Bank of Ireland chief executive Brian Goggin. Earlier this week he said the economy could continue to generate jobs, and predicted growth of 4% next year.

“This economy is not about to go off a cliff,” he said.

Nascent industrial unrest — at Aer Lingus and Dublin Bus — is a reminder of the necessity to manage our affairs in a way that ensures it remains steady as she goes. The great effort must be to bring about reform where it is needed by consensus rather than through confrontation.

Worryingly, though, the Central Bank has concerns about our extraordinary levels of private sector debt and our susceptibility to a weaker US economy.

Finance Minister Brian Cowen has made a commitment to a policy of fiscal discipline in the face of any economic slowdown. The implementation of that policy will require determination as he is sure to come under pressure from colleagues and from the public sector for more spending.

Budget day — less than three weeks away — will indicate whether Mr Cowen has held the line or not, whether he has confronted public spending in a way to inspire even more confidence in our economy.

The bottom line is that we never had it so good, so let’s work to ensure that the good times continue.