ESRI expects economy to shrink by 7.1%

The Irish labour market is set for 'one of the largest one-quarter shocks in living memory', according to the ESRI.

The research institute believes unemployment will rise to 18 per cent by the end of June - as over 350,000 people lose their jobs.

They're forecasting the economy to shrink by 7.1% by the end of the year, should Government measures stay in place for 12 weeks.

Research Professor with the ESRI Kieran McQuinn says it's a shock of unprecedented measures.

"You were looking at unemployment at around 4.8%, which was effectively the full employment rate in the economy.

"What we think what will happen as a result of the measures that had to be taken is that unemployment will rise to somewhere in the region of 18% in Q2, and in all reality it could go even higher than that."

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