An examination of the relationship between unemployment and minimum wage rates in Ireland: 1994-2010

Abstract

During 1995-2007, Ireland experienced a period of rapid growth. Throughout this time, unemployment figures fell dramatically and wages in Ireland grew to one of the highest rates in Europe. Today however, the situation has changed spectacularly. Unemployment figures are at an all time high leaving many dependent on Social Welfare. While the employment situation has change radically, Ireland’s minimum wage rate is still one of the highest in Europe. The research question that is posed in this research was to determine the relationship between the minimum wage rate and unemployment rates in Ireland. The methodology that was used for this research was qualitative and involved conducting a semi-structured interview with six participants. The participants consisted of high profile relevant bodies in Irish society and participants with valid views on the research topic. The findings of the research indicate what the participants feel about the minimum wage and the factors to which they feel contribute to unemployment. The findings show that participants feel the minimum wage has some association with unemployment; however, other factors need to be considered before a decrease in minimum wage is considered. The research thesis concludes with suggestions for future research in the area of minimum wage and unemployment rates. The researcher has also highlighted some areas that should be looked at regarding the unemployment crisis.