120,000 more jobs will go, warns ESRI
Many are staying in college as an alternative to the dole queue.
The Irish economy will shed almost 120,000 jobs in 2009 and 50,000 people will emigrate, an economic forecast warned yesterday.
The ESRI also believes the Government will be hard-pressed to pay the 3.5pc wage rise due in September under the national pay agreement.
In a Quarterly Economic Commentary, it said GNP will shrink by 4.6pc next year on top of an anticipated 2.6pc contraction for 2008.
"We now expect that average employment will fall by 117,000 in 2009," said the report.
"A fall in employment of that size will be consistent with net outward migration of 50,000, with the unemployment rate averaging 9.4pc."
The ESRI is also predicting zero wage growth in the public sector and salary reductions in the private sector.
The economists said the Irish economy should be as well placed as possible to take advantage of any forthcoming global upturn.
The ESRI also called on the social partners to come together to reassess the national wage deal in the light of rapidly changing circumstances.
"The possibility of pay cuts in the public sector should at least be considered in this context as pay cuts may well be considered preferable to cuts in services," the report said.
