Public Sector pay cuts will cost private sector jobs.

wtk2007

Less disposable income as a result of this budget will mean more job losses in the Private Sector. No one should be too smug today unless your that sure of your future.

Before you reply - i'm one of the Private sector working a public sector job for more money than I deserve to earn for my trade - due to a recruitment embargo.

Time Magazine

wtk2007 wrote: »

Less disposable income as a result of this budget will mean more job losses in the Private Sector. No one should be too smug today unless your that sure of your future.

We don't have the money. We could all be employed if we all earned a million quid a year. Thing is, we don't. So yes, job cuts were inevitable. At least this way, we don't need the IMF to tell us where to make the cuts.

MI5

wtk2007 wrote: »

Less disposable income as a result of this budget will mean more job losses in the Private Sector. No one should be too smug today unless your that sure of your future.

Before you reply - i'm one of the Private sector working a public sector job for more money than I deserve to earn for my trade - due to a recruitment embargo.

You have a point here. Unemployment in the north could spike up

ParkRunner

This is a serious issue. With a rising social welfare bill next year due to guaranteed rising unemployment, the cuts are likely to be wiped out just due to increased numbers on the dole.

Time Magazine

EF wrote: »

This is a serious issue. With a rising social welfare bill next year due to guaranteed rising unemployment, the cuts are likely to be wiped out just due to increased numbers on the dole.

No they won't. The figures are nowhere near backing up that statement.

Agent J

You have the it the wrong way around.

Private sector job cuts has cost public sector pay.

wtk2007

Time Magazine wrote: »

We don't have the money. We could all be employed if we all earned a million quid a year. Thing is, we don't. So yes, job cuts were inevitable. At least this way, we don't need the IMF to tell us where to make the cuts.

Economic Stimulation was needed, Public sector wastage should be tackled, just taking money away with no real plan is not the answer.

wtk2007

Agent J wrote: »

You have the it the wrong way around.

Private sector job cuts has cost public sector pay.

Its a bit of a catch 22 situation really - everyone suffers!!!!

Time Magazine

wtk2007 wrote: »

Economic Stimulation was needed, Public sector wastage should be tackled, just taking money away with no real plan is not the answer.

"Economic stimulation."

Think about what that is exactly.

Maybe a stimulus of €100 per household, costing about €150m?

Or €1,000 per household, costing €1.5bn?

Or €2,000 per household, costing €3bn?

Or €8,000 per household, costing €12bn? Surely €8k per household is pushing it a bit?

No, the budget deficit for 2009 is going be about €24bn, or about €16,000 per household.

If stimulus is the always the answer, why not continue to infinity?

The problem with stimulus is that, at some point, we cannot afford it anymore. €16,000 per household is beyond that level. For 2010 we're still looking at a deficit of the order of €12,000 per household.

wtk2007

MI5 wrote: »

You have a point here. Unemployment in the north could spike up

Yeah! Forgot about how it will effect the poor northies.

doolox

If the govt are looking at the figures lets say the average industrial wage of 30k
versus the dole of 10k then it is cheaper to have someone on the dole and that is all that concerns the govt, the short term of 3 to 5 years between elections.
They do not care about the long-term good of society and the need to develop people in the long term to fit the demands of the future economy.

There should be advice centres and education and development centres open to all suitable people at reasonable cost instead of having them doing absolutely nothing on the dole.
This won't happen because too many vested interests will be affected and lose their ability to get high wages for their services. Apprentices and other people starting off or changing their career into a new sector are at a huge disadvantage because every sector is shrinking and losing staff, very few are hiring and then only hiring multi degree qualified people with many years experience in recently developed fields.

FAS is shrinking and many of the college courses are losing places so there seems to be very little scope for acquiring the skills necessary to get a job in the new hard times

RGS

Government have indicated they expected another 75,000 unemployment next year which will cost another €1 billion in SW.

We need a proper job stimulus in the budget not just taking €4 billion out of the economy.
Excess and VAT reduction would, IMO, not generate enough spend to allow companies in retail to prosper.

We should have cut employer PRSI by 50%, brought in one VAT rate of 15%, that could have reversed the cross border shopping especially since the UK raised their VAT to 17.5%.

wtk2007

Time Magazine wrote: »

"Economic stimulation."

Think about what that is exactly.

Maybe a stimulus of €100 per household, costing about €150m?

Or €1,000 per household, costing €1.5bn?

Or €2,000 per household, costing €3bn?

Or €8,000 per household, costing €12bn? Surely €8k per household is pushing it a bit?

No, the budget deficit for 2009 is going be about €24bn, or about €16,000 per household.

If stimulus is the always the answer, why not continue to infinity?

The problem with stimulus is that, at some point, we cannot afford it anymore. €16,000 per household is beyond that level. For 2010 we're still looking at a deficit of the order of €12,000 per household.

Stimulus to create new jobs, new investment new forms of revenue for the gov. I dont think just cuts to the public sector pay is going to entice overseas investment, or jump start the construction, motor, tourism or agriculture industries.

Dannyboy83

EF wrote: »

This is a serious issue. With a rising social welfare bill next year due to guaranteed rising unemployment, the cuts are likely to be wiped out just due to increased numbers on the dole.

At a payment of €207 per week on SW, for 52 weeks, to wipe out the €4 billion in cuts, something approaching 371,609 people who have to lose their job, all on the 1st of January.

At the last count there were 317,000 people working in the public sector, down from 337,000, which cost the Irish taxpayer €19.8 billion p/a (McCarthy report pg 14).

jake59

doolox wrote: »

If the govt are looking at the figures lets say the average industrial wage of 30k
versus the dole of 10k then it is cheaper to have someone on the dole and that is all that concerns the govt, the short term of 3 to 5 years between elections.
They do not care about the long-term good of society and the need to develop people in the long term to fit the demands of the future economy.

There should be advice centres and education and development centres open to all suitable people at reasonable cost instead of having them doing absolutely nothing on the dole.
This won't happen because too many vested interests will be affected and lose their ability to get high wages for their services. Apprentices and other people starting off or changing their career into a new sector are at a huge disadvantage because every sector is shrinking and losing staff, very few are hiring and then only hiring multi degree qualified people with many years experience in recently developed fields.

FAS is shrinking and many of the college courses are losing places so there seems to be very little scope for acquiring the skills necessary to get a job in the new hard times

Its up to people to start thinking outside the box. Its going to be the likes of sole traders and SMEs that can grow and start to employ people again into the future that is going to get us going again. Its going to come from the grass roots and its going to give people a great sense of self worth when they see they can actually do it for themselves. It may take time but start thinking lads. There are loads of good ideas in all of us that when developed can start making money. Hard work and imagination is what is required. Best of luck

opinion guy

wtk2007 wrote: »

Less disposable income as a result of this budget will mean more job losses in the Private Sector. No one should be too smug today unless your that sure of your future.

Before you reply - i'm one of the Private sector working a public sector job for more money than I deserve to earn for my trade - due to a recruitment embargo.

Yes I agree. Effectively cutting sector pay is going to futher cut the money available for spending in the nation as a whole.

But thats not something anyone wants to hear. I guess it will only affect small to medium businesses mostly thou. The likes of Tesco won't be too affected but the small shop owner will feel it

wtk2007

opinion guy wrote: »

Yes I agree. Effectively cutting sector pay is going to futher cut the money available for spending in the nation as a whole.

But thats not something anyone wants to hear. I guess it will only affect small to medium businesses mostly thou. The likes of Tesco won't be too affected but the small shop owner will feel it

Spot on! The small and medium businesses will feel the knock on effect. Tesco and the other multiples can weather the storm, by squeezing the suppliers as usual.

wtk2007

Dannyboy83 wrote: »

At a payment of €207 per week on SW, for 52 weeks, to wipe out the €4 billion in cuts, something approaching 371,609 people who have to lose their job, all on the 1st of January.

At the last count there were 317,000 people working in the public sector, down from 337,000, which cost the Irish taxpayer €19.8 billion p/a (McCarthy report pg 14).

But you are not taking into account the amount of revenue loss generated by an increase in unemployment whether it be in the private or public sector.