Cut dole queues by slashing SME costs

ISME, the Irish Small and Medium Enterprises Association says business costs must be addressed if the Government is to achieve its aim of bringing the unemployment rate below six per cent by 2020.

The lobby group acknowledged last month’s reduction in the national unemployment rate, but highlighted the damage high business costs are having on the SME sector.

The Association claims that if the government is to reduce unemployment to below six per cent by 2020, it needs to tackle excessive business costs which are impacting potential employment growth across the country.

“The CSO figures confirm 135,800 people are still signing on, and the standardised unemployment rate is at 6.2% for April, while youth unemployment is at 12.9 per cent,” said ISME CEO Neil McDonnell.

“If the Government is to attain the Holy Grail figures of unemployment below six per cent, and unemployment for long-term claimants below two and a half per cent by 2020, they must focus attention on reducing the costs of doing business and the cost of living,” Mr McDonnell said.

ISME have called on Government to reduce government-influenced business costs to below the EU average; target capital investment at job-rich infrastructure and outsource more state sector services to SMEs.

They also want to see reform the social welfare system to make it more profitable to work, and avoid poverty traps.

“Our members say rising commercial rates, insurance and wages are the biggest issues constraining employment growth. If the Government reduces the costs of business and living costs in the areas it can influence, the wealth of all citizens will rise, and unemployment will fall,” Mr McDonnell said