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Outline the benefits and challenges of increasing employment for the Irish economy. - Leaving Cert Business - Question 2(B) - 2018
Question 2(B)
Outline the benefits and challenges of increasing employment for the Irish economy.
Worked Solution & Example Answer:Outline the benefits and challenges of increasing employment for the Irish economy. - Leaving Cert Business - Question 2(B) - 2018
Step 1
Benefits
Answer
Increasing employment can lead to several positive outcomes for the Irish economy:
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Increased Income: Employees will have higher disposable incomes, which can boost consumption spending and improve the overall standard of living in Ireland.
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Higher Tax Revenue: More employment means increased taxation revenue for the government, which can be allocated towards public services, reduction of national debt, and social welfare improvements, leading to a better social safety net.
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Confidence and Pride: As employment levels rise, both confidence and local pride in communities can flourish, creating a more engaged populace.
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Foreign Investment: A prosperous employment landscape may attract increased foreign investment, enhancing Ireland's global economic standing.
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Infrastructure Development: To support growing employment, improvements in infrastructure such as transportation (e.g., DART, Luas) will be necessary, facilitating business operations and community connectivity.
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Political Stability: With higher employment, political stability and social cohesion are likely to improve as citizens feel more secure and engaged in their communities.
Step 2
Challenges
Answer
Despite the benefits, there are also challenges associated with increasing employment in the Irish economy:
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Skills Shortage: Certain roles like programmers and chefs face high demand, leading to difficulties in finding qualified workers to fill vacancies.
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Housing Pressure: Increased employment may lead to a surge in housing demand, resulting in higher rents and a lack of suitable accommodations in critical areas, deterring potential residents and workers.
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Commuter Culture: Growth in employment might create traffic congestion as people commute longer distances, potentially limiting the development of local community activities.
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Inflation Pressures: The rise in employment can lead to increased spending, contributing to inflationary pressures that may hurt businesses' competitiveness.
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Wage Constraints: In efforts to control wage demands, companies may resort to reducing work hours or offering less lucrative contracts, which can limit job satisfaction and stability.
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Immigration: An inflow of workers seeking opportunities in Ireland may lead to societal strain, contributing to rising competition for housing and jobs.