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Emigration from Ireland in recent years has increased - Leaving Cert Economics - Question 6 - 2013
Question 6
Emigration from Ireland in recent years has increased. (i) Explain the underlined term. (ii) State and explain two reasons for the increase in emigration. (iii) S... show full transcript
Worked Solution & Example Answer:Emigration from Ireland in recent years has increased - Leaving Cert Economics - Question 6 - 2013
Step 1
Step 2
(ii) State and explain two reasons for the increase in emigration.
Answer
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Economic recession in Ireland / Job opportunities abroad: The economic downturn has led to increased unemployment within Ireland, leaving many individuals with few available job opportunities. Consequently, people are seeking work in countries where job vacancies exist, such as Canada and Australia.
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Wage rates in Ireland: Wages in Ireland have been declining, making it challenging for workers to maintain a reasonable standard of living. Many individuals are opting to emigrate to countries where they can earn higher wages and improve their quality of life.
Step 3
(iii) State and explain two economic effects which this increase in emigration may have on the Irish economy.
Answer
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Loss of skilled labor: Emigration can result in a 'brain drain,' where skilled workers leave the economy. This can hinder economic growth as the country loses valuable talent essential for various sectors, including healthcare and technology.
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Increased dependency ratio: With a rising number of emigrants, particularly younger individuals, the proportion of dependents (non-working population) may increase. This can put pressure on social services and increase the financial burden on the remaining workforce.
Step 4
(i) Outline two possible economic effects which this ageing population may have for the Irish economy.
Answer
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Pressure on provision of state pensions: A larger elderly population will increase the demand for state pensions, placing financial strain on the government. This pressure may require tax increases or a restructuring of pension plans to ensure sustainability.
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Increased government expenditure: As the elderly population grows, there will likely be higher demands for heathcare and social services. The government may need to allocate more resources to meet these needs, impacting budget priorities.
Step 5
(ii) Suggest one reason why the Irish Government increased the retirement age to 66 years effective from 2014.
Answer
- Reduce the costs of future pensions: By increasing the retirement age, the government can save on the costs associated with paying out pensions for an extended period. This decision aims to ensure the long-term sustainability of the pension system as the population ages.
Step 6
Step 7
(ii) State and explain two possible reasons for Ireland’s continuing high unemployment.
Answer
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Worldwide economic recession: Global economic downturns can lead to decreased demand for goods and services, prompting businesses to cut back on hiring or initiate layoffs.
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Relocation of industry outside of Ireland: Many companies have moved their operations overseas to countries where labor costs are lower, leading to reduced job availability in Ireland.
Step 8
(iii) Suggest one measure each of the following could take to reduce Ireland’s unemployment rate:
Answer
- Irish consumers: Support local businesses by buying Irish-made products, which can promote domestic jobs and stimulate the economy.
- The Irish Government: Implement training programs aimed at upskilling the workforce to match the demands of current job markets, thereby improving employment rates.