Number on Live Register climbs for third month

STATE OF THE ECONOMY:IRELAND'S unemployment rate nudged upwards for the third consecutive month in August, with the number of people on the seasonally adjusted Live Register increasing by 1,600 as summer jobs failed to materialise with their traditional frequency.

This pushed the standardised unemployment rate up by 0.1 per cent to 14.4 per cent last month.

Overall, there were 469,713 people signing on the Live Register of jobseekers benefit and allowance claimants in August on an unadjusted basis, a rise of 2,790, or 0.6 per cent, over the year.

This is a slightly smaller increase than the 0.7 per cent rise that occurred in July and is also significantly lower than the 6.9 per cent increase seen in the previous 12-month period.

The Irish National Organisation of the Unemployed described the figures as “a frightening reality” for the country.

“It is clear from these figures that Government responses to date are inadequate to address the challenge of unemployment: piecemeal programmes with different rules and criteria leading to increased confusion on the ground will not get people back to work. A different approach is required,” the organisation said.

On an unadjusted basis, there was a monthly decline of about 600 in the numbers on the register. However, this decline was smaller than would have been normally expected in August, resulting in a calculated rise of 1,600 on the seasonally adjusted register.

“In a recession, spare capacity within firms – reducing the need for increased summer hiring – means that past seasonal patterns are unlikely to be representative of current conditions,” said Davy economist Conall Mac Coille. He said it was difficult to infer “any significant deterioration in labour market conditions” from the data.

However, Alan McQuaid, economist at stockbroking firm Bloxham, described the figures as “disappointing to say the least”, given the jobless rate was still on an upward trend. “The Government is well aware that there is no easy fix to the unemployment problem, and things are unlikely to improve on the jobs front until the economy starts to grow again on a sustained basis,” he said.

There are now 88,770 people under 25 on the Live Register. This number has decreased sharply, falling 556 compared to July and by 5,780 on an annual basis, which may partly be a reflection of emigration trends.

Meanwhile, the percentage of people signing on who are classed as long-term claimants continued to rise, accounting for 40.8 per cent of the total in August. The number of long-term claimants – those on the register for a continuous period of more than a year – has risen by 43,176 or 9 per cent over the year to the end of August.

The Central Statistics Office data reveals a growing number of casual and part-time workers signing on, indicating potential problems with underemployment as well as unemployment.

Some 18.2 per cent of those who signed on in August are workers with part-time or casual hours, up from 16.8 per cent a year earlier.

The Irish Small and Medium Enterprises Association said the figures highlighted that the Government’s jobs initiative was not working and that a more comprehensive approach was urgently required to eliminate dole queues.

Chambers Ireland’s deputy chief executive Seán Murphy noted the positive elements of the CSO’s data, saying that “a significant levelling off” in the growth of unemployment was a reflection of stabilisation in the wider economy.

However, he added that the numbers unemployed “are too high and need to fall”.