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'Ireland's unemployment rate is expected to be 6% or lower by the end of the year.' (Source: Department of Finance, 2017) (i) Name one method of measuring unemployment in Ireland - Leaving Cert Economics - Question 8 (a) - 2018
Question 8 (a)
'Ireland's unemployment rate is expected to be 6% or lower by the end of the year.' (Source: Department of Finance, 2017) (i) Name one method of measuring unemp... show full transcript
Worked Solution & Example Answer:'Ireland's unemployment rate is expected to be 6% or lower by the end of the year.' (Source: Department of Finance, 2017) (i) Name one method of measuring unemployment in Ireland - Leaving Cert Economics - Question 8 (a) - 2018
Step 1
Name one method of measuring unemployment in Ireland.
Answer
One method of measuring unemployment in Ireland is the Live Register, which records the number of people signing on for unemployment benefits. Another method is the Quarterly National Household Survey (QNHS), which provides a broader overview of the labor market.
Step 2
Discuss one economic effect which the continuing rise in employment may have on Retailers in Ireland.
Answer
As employment continues to rise, more individuals will have income to spend, leading to increased disposable income and subsequently higher sales and profits for retailers. More spending power will likely encourage retailers to expand their operations, such as hiring additional staff or increasing stock levels, to meet growing demand.
Step 3
Discuss one economic effect which the continuing rise in employment may have on Government finances.
Answer
With a rise in employment, government finances are likely to benefit from increased tax revenues. More individuals in work means higher income tax contributions, as well as increased VAT from consumer spending. This boost in tax income can result in a stronger fiscal position for the government.
Step 4
Discuss one economic effect which the continuing rise in employment may have on Ireland's Balance of Trade.
Answer
An increase in employment often leads to higher levels of consumer spending, which may result in greater demand for imports as citizens purchase more foreign goods. This can negatively impact Ireland's Balance of Trade if the value of imports rises significantly compared to exports, leading to a trade deficit.