More recently, in the face of the sharp contraction in economic activity, many firms have taken action to reduce their costs including the negotiation of reductions in wage rates, with a view to protecting employment.
While this has undoubtedly been painful for those concerned, it nevertheless reflects encouraging evidence of the flexibility and realism that is needed if the economy is to maintain the maximum possible number of jobs in the short-term while placing Ireland in a favourable position to benefit from an eventual recovery in world demand. This type of flexibility must embrace all sectors of the economy.