Trailing the Celtic Tiger explores politics, economics and society in Ireland following the rapid growth of the 1990s and the emerging generation of the new millennium. You'll find my own observations from daily life in Maynooth and Dublin, as well as notable articles and commentary on the transforming nation, in the posts below.

Monday, October 6, 2008

Unemployment rate reaches 6.1 percent

The Associated Press reported on Sept. 3 that the Irish unemployment rate climbed to 6.1 percent - the highest level since January 1999. Some analysts argue the deceleration of Irish economic growth over the past year is a result of the downturn in the U.S. The unemployment rate has also been raised by a large number of layoffs in the construction industry, as Ireland's recently booming housing market has begun to slow as well. Nevertheless, the AP reminds us, the current unemployment rate "remains distant from Ireland's pre-Celtic Tiger years, when double-digit joblessness and chronic emigration were the norm."

With both Europe and the U.S. experiencing rough economic times, climbing unemployment in Ireland only makes sense. Less foreign investment means less construction and less manufacturing...and therefore, fewer jobs. If the trend continues over the coming year, it will be fascinating to monitor attitudes surrounding immigration and the employment of resident aliens in Ireland. In a nation that is really just beginning to experience and adjust to heavy immigration, will prejudices against foreigners resonate in a time of economic hardship (as I've witnessed in parts of the United States)? This is a nuance of social interaction that I'll certainly be on the lookout for.

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