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The Irish Small and Medium Enterprises Association (ISME) has commented that while unemployment figures across the country are declining, government-controlled costs continue to rise.

The latest unemployment figures released by the CSO shows that there are 160,700 people currently signing-on, with the overall unemployment rate for November standing at 7.3 per cent and youth unemployment standing at 15.5 per cent.

Yet while unemployment figures are on the fall overall, the ISME believes the Government still needs to do more to create an environment where more jobs can be created.

Neil McDonnell, CEO, ISME, said: “State controlled living costs are having an impact on job creation.

“Government policies strongly influence almost 48 per cent of the costs in the CPI.

“They must act now to reduce these costs, in health, education, housing, rent, insurance and travel.

“If Government controlled costs are reduced, workers would have more money in their pockets. This would reduce the calls for any pay increases and would allow employers to take on more staff.”

The Association called on Government to consider the following measures:

  • Reduce government influenced business costs to below the EU average
  • Target capital investment in job rich infrastructure
  • Outsource more state sector services to SMEs
  • Reform the social welfare system to make it more profitable to work, and avoid poverty traps

Date published 5 Dec 2016 | Last updated 5 Dec 2016

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