Jobless rate reaches lowest point since before the crisis

Ireland’s unemployment rate has hit its lowest level since the beginning of 2008, after figures for the year so far were revised down. Last month the unemployment rate was 6.1 per cent, not 6.3 per cent as had been estimated, and in July it was 6.2 per cent rather than 6.4 per cent. In the second quarter of this year the rate was also revised down to 6.2 per cent, its lowest point since the second quarter of 2008, according to previously published data. “The seasonally adjusted number of persons unemployed was 136,700, the lowest since the second quarter of 2008 when the comparable figure was 127,200,” said Jim Dalton, a statistician at the Central Statistics Office. The number of people in work in the three months to June was 48,100 higher than the same period a year earlier, reaching 2.06 million, a 2.4 per cent increase. On a seasonally adjusted basis, the employment rate rose 0.2 per cent compared with the first quarter. Labour market data for the second quarter showed a “modest” 0.2 rise rise in employment on the quarter, with annual jobs growth at 2.4 per cent, Conall Mac Coille, an economist at Davy stockbrokers, said. “The relatively weak jobs figures for Q2 are probably just a blip, with most surveys still pointing to robust employment growth.”

The strongest growing sectors were IT and telecoms, and construction, which experienced growth of 9.3 per cent and 7.7 per cent respectively. All regions except the border experienced positive employment growth in the first half of this year. The region with the strongest growth was the west, at 5.9 per cent. Alison Wrynn, an economist with Ibec, the employers’ group, said: “The labour market is now approaching full employment with unemployment now at its lowest rate since 2008. However despite these gains, our labour force participation rate is still at 2012 levels. In a European context, this rate is very low. It is the fourth lowest of the EU average and more than 10 percentage points lower than the top performing countries. Budget 2018 must include measures that will address these issues by removing barriers to work. Despite some improvements in recent years, childcare costs in Ireland remain among the highest in Europe. This, combined with high marginal tax rates, acts as a deterrent to enter the workforce, particularly for second earners. “We are already experiencing acute skills shortages in many sectors, and these will only get worse unless these issues are addressed.” Source: