Employment and Unemployment MCQ 3

Employment and Unemployment

• The Labour Force Survey (LFS) was introduced in 2017 as a replacement for the Quarterly National Household Survey.
• The LFS is considered a more accurate measure of unemployment compared to its predecessor.

Labour Force Survey (LFS)

• The Central Statistics Office (CSO) invites 32,500 households to participate in the LFS each quarter.
• The actual sample size depends on the response rate, which can vary; for example, in 2020 Q3, 12,358 valid households responded.
• The LFS has a time lag between the publication of the results and the period to which the survey applies.

Factors Affecting Employment

• A rise in the cost of labour can negatively impact employment
• Employer's PRSI (Pay Related Social Insurance) can increase the cost of hiring employees
• High interest rates can make borrowing more expensive, leading to reduced investment and employment
• Exchange rate fluctuations can affect the competitiveness of exports and ultimately employment
• Relocation of Multinational Corporations (MNCs) can lead to job losses and changes in employment patterns

Government Policies to Boost Employment

• Cutting VAT (Value-Added Tax) on certain goods and services can make them more attractive, e.g., the 9% rate in tourism and hospitality in 2021
• Providing subsidies to employers, such as the JobsPlus Scheme, which offered grants up to €10,000 for hiring workers from the live register in 2021
• Offering opportunities for retraining can help address structural unemployment
• Promoting international tourism can create jobs and stimulate economic growth
• Promoting exports has been an effective economic policy since the 1950s, leading to increased employment opportunities
• Reducing business costs, such as employer's PRSI, can make it easier for companies to hire and retain employees

Introduction to Labour Force Survey (LFS), its methodology and its relevance in measuring unemployment. Learn about the survey's sample size and response rate.