Unemployment falls to nine-year low of 6.3%

Latest figures show number of workers classified as unemployed fell by 900 in June

 

The State’s headline rate of unemployment has fallen to a new post-crash low of 6.3 per cent, according to the Central Statistics Office (CSO).

The latest figures show that the number of workers classified as unemployed fell by 900 to 139,400 in June, which equates to an annual decrease of 42,100.

Having peaked at 15.2 per cent at the height of the crash in 2012, the Republic’s jobless rate is now three points lower than the euro-area average of 9.3 per cent.

On current trends, it is expected to fall below 6 per cent in the coming months, which will further boost consumer spending and lessen the Government’s expenditure on social welfare.

However, several recent reports have warned that at unemployment levels below 6 per cent the Irish economy is close to full employment and runs the risk of overheating.

Ireland remains on a clear trajectory for unemployment to fall below 6 per cent in the coming months, which bodes well in terms of the likelihood of increased consumer spending and retails sales as more people take home a weekly pay cheque,” said Mariano Mamertino, economist with recruitment website Indeed.

“Whilst the unemployment rate in Ireland remains higher than EU countries like Germany, the Netherlands or Austria, OECD data released last week shows that Ireland is doing a better job at integrating immigrants into the labour force,” he added.

The CSO numbers show the unemployment rate for men was 7.1 per cent in June, down from 9.4 per cent last year, while the jobless rate for women was 5.4 per cent, down from 5.5 per cent a year ago.

The State’s youth unemployment rate was 11.9 per cent, down from 11.8 per cent in May.