DAVY VIEW

Yesterday’s data from the Department of Social Protection, showing only a 12,300 decline in unemployment claimants last week, are a worrying sign that labour market gains are dissipating after the re-opening of the economy in July, with the unemployment rate still at a stubbornly high level at close to 16%. This will raise fears that unemployment will stay at double-digit levels in 2021 despite the easing of business restrictions related to COVID-19 as activity in retail/tourism and other sectors will likely remain impaired.