In this week’s public policy bulletin, we take a look at a report published this week by the Irish Fiscal Advisory Council on Ireland’s top corporation taxpayers. We also review the latest unemployment rate estimates from the CSO, the state of consumer confidence in May and the latest Labour Force statistics for Northern Ireland.
A third of Irish corporation tax estimated to have been paid by just 3 companies – report
New research published this week by the Irish Fiscal Advisory Council (IFAC) estimates that just three corporate groups accounted for around a third of all corporation tax revenues collected between 2017 to 2021. The research paper, titled “Understanding Ireland’s Top Corporation Taxpayers”, seeks to better understand this concentration of Ireland’s corporation tax receipts amongst a handful of large, foreign-owned multinationals. The report’s estimates were arrived at using publicly available financial statements with a number of different approaches employed to calculate the level of corporation tax paid by the companies analysed. However, in doing so, the report concedes that there are “several limitations” to its analysis, particularly because most large groups “are not required to disclose the amount of corporation tax they pay in Ireland”.
Unemployment rate falls to record low according to latest CSO estimate
Ireland’s unemployment rate reached a record low of 3.8 percent in May, falling below the previous record of 3.9 percent last seen in April 2001. Unemployment had stood at 4.2 percent the same month last year. According to its estimates, the CSO recorded an unemployment rate for men of 4.1 percent in May, compared to a rate of 3.4 percent for women in the same period. Meanwhile, the youth unemployment rate eased to 6.9 percent in May, down from a revised rate of 7.7 percent in April. According to the estimate, the seasonally adjusted number of people unemployed stood at 103,300 in May, compared with 106,500 in April of this year. You can read the full statistical release here.
Consumer confidence at highest level in over a year – Irish League of Credit Unions
Irish consumer confidence improved further in May (reaching a 14-month high) and signalling “a continuing easing in concerns about the economic outlook” according to the latest Consumer Sentiment Index from the Irish League of Credit Unions. This, the report points out, contrasts with significantly weaker US sentiment as the general consumer mood here has evidently been impacted by a “stronger Irish economy and buoyant Budget outlook”. However, consumers are still cautious on spending plans with a majority planning to curtail spending in coming months due to a prevailing feeling that “the worst of the cost-of-living crisis is not behind them at this point”. Nonetheless, the index is now at 62.4, showing the trend of improving sentiment that has been underway since last year is now well established and stronger than elsewhere in the euro area.
Latest Northern Ireland NEET statistics released (young people who are not in education employment or training)
According to the latest Labour Force Survey released by the NI Statistics and Research Agency, there were an estimated 18,000 young people aged 16 to 24 years in Northern Ireland who were not in education, employment or training (NEET) in January to March 2023. This was equivalent to 9 percent of all those aged 16 to 24 years in the region. By comparison, the proportion of young people who were NEET in the UK during the same period was 10.6 percent. In January to March 2023 there were an estimated 13,000 young people aged 16 to 24 years in Northern Ireland who were NEET and who were not looking for work and/or not available to start work (economically inactive).
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