If the likely scenario of an unemployment rate of 8%+ plays out then it could be argued that the surplus workers will drive down wages thus increasing our competitiveness and decreasing the likelyhood of multinationals pulling out.
Yes. The 2 go hand in hand. Higher unemployment is considered the only way to drive down wages and return competitiveness to normal levels when you are unable to do so by depreciating your currency.
centralbank.ie/data/QrtBullF … 0Table.pdf
Take a look at the above and look at the technical assumptions for the forecast. Also worth noting that they expect unemployment to max at 4.75%.
Currently its at 4.6% 