Gloomy economic data - The figures point to pay restraint

WHEN Brian Cowen became Minister for Finance in September 2004, his department mandarins may have welcomed him with open arms; aglow with excitement, announcing he had a budget surplus of €2.3 billion.

Just four years later his successor, whomever that may be, would be unwise to expect such an effusive welcome as they will face a deficit of at least €5.3bn.

Taoiseach Cowen’s first cabinet will also face an unemployment rate of 5.5%, the highest figure since June 1999. Yesterday’s Central Statistics Office figures showed an increase of 8,507 to 197,992, beating February’s record rise of 8,000. This represents a 27% increase on the same month last year, the biggest monthly rise in more than 25 years — since March 1983 in fact.