The number of people claiming jobless benefits or wage subsidy in Ireland tripled in March, data showed on Thursday, as the economic impact of the coronavirus outbreak left the state supporting 513,350 people, or a fifth of the labour force.
That is higher than the peak seen during the global financial crisis a decade ago.
The Taoiseach ordered citizens last Friday to stay at home for at least two weeks after a gradual ramping up of restrictions that began in mid-March and has left only essential parts of the economy such as supermarkets open.
Ireland's live register, which measures demand for regular jobless benefits, rose to 207,200 from 182,800 on a seasonally adjusted basis. However, a further 283,037 sought the higher 350 euro weekly unemployment emergency payment for those who have lost jobs or had hours cut as a result of the disruption.
Another 25,104 workers claimed the temporary COVID-19 wage subsidy in the first three working days of the scheme that allows struggling employers to ask the state to pay 70% of workers' wages. A delayed estimate of the unemployment rate, which stood at 4.8% in February, is due to be published next week.
During the financial crisis a decade ago, which hit Ireland especially hard, it took three years for jobless claims to reach a peak of around 450,000. Just three weeks were needed this time for the two forms of jobless claimants to top that.
Analysts say the April numbers will be even worse as gyms, hairdressers, DIY stores and other retailers only fully shut their doors in the last week or so.
The government is urging firms to use the subsidy scheme and even take back on staff previously let go. Almost 36,000 firms, which can top up the payment, had registered by the end of Wednesday, Finance Minister Paschal Donohoe said.
Ireland's Economic and Social Research Institute (ESRI), an independent think tank partly funded by the state, predicted last week that the economy could contract by more than 7% in 2020 and unemployment could soar to around 18%.
Data released just days before Ireland began to shut down the economy showed that gross domestic product grew by 5.5% in 2019, likely making it the EU's fastest-growing economy again, a sharp recovery dating back to 2013.
Ireland has so far set aside 6.7 billion euros to support the economy, measures the Moody's ratings agency said this week would cushion the economy with Ireland's credit profile set to remain relatively resilient if the coronavirus crisis is relatively short-lived. (Reuters)
Source: www.businessworld.ie
