“Unemployment is at its lowest level since 2009, according to the latest figures from the CSO.” (RTE News November 2013) (i) What do the initials CSO stand for? (ii) Discuss one economic effect which a fall in unemployment may have on each of the following: - Retailers in Ireland; - Government finances; - Ireland’s Balance of Trade (i.e - Leaving Cert Economics - Question b - 2014

A fall in unemployment typically leads to increased disposable income for households. As more people gain employment, they have more money to spend, resulting in increased consumption. Retailers may experience higher profits as sales rise, allowing them to expand their operations and potentially hire more staff.

With increased employment, the government can expect higher tax revenues, particularly from income taxes and Value Added Tax (VAT). This increase in revenue may allow for reduced social welfare spending, as fewer individuals will require unemployment benefits. Consequently, the state’s finances improve, potentially leading to decreased borrowing needs.

A reduction in unemployment can positively impact Ireland's Balance of Trade, primarily through increased exports. When more people are employed, production can increase, allowing businesses to export more goods. This growth in exports can help reduce trade deficits, enhancing the country’s economic stability.

1. Achieve Economic Growth: Economic growth aims to improve the overall prosperity of the nation by increasing production and consumption.
2. Provide Efficient Public Services: This aim focuses on ensuring that the government delivers quality public services such as healthcare and education efficiently to improve citizens' quality of life.

1. To achieve economic growth, the government could invest in infrastructure projects, which would create jobs and stimulate the economy.
2. To provide efficient public services, the government could implement digital solutions to streamline administrative processes, reducing costs and increasing service efficiency.