Unemployment rate drops to 11.1% as labour market improves

The State’s unemployment rate dropped to 11.1 per cent in the third quarter of this year, its lowest level since 2009, as conditions in the labour market improved.

The latest Quarterly National Household Survey (QNHS) indicates that the rate of job creation in the economy has accelerated after moderating in the earlier part of the year.

Widely regarded as the most reliable set of numbers on the economy, the survey, compiled by the Central Statistics Office, shows unemployment decreased by 37,400 on an annual basis in the third quarter.

As a result, the total number of persons unemployed in the State fell to 245,500, which equates to 11.1 per cent of the workforce, the lowest level since 2009.

It was also the ninth quarter in succession to record a drop in unemployment.

The survey’s headline rate of unemployment was marginally above the 11 per cent rate estimated by the CSO’s most recent Live Register.

The figures also indicated employment growth - a key measure of economic health - rose by 1.5 per cent, equating to 27,000 jobs, on an annual basis.

On a seasonally adjusted basis, employment increased by 10,400 (+0.5 per cent) on the previous quarter.

This follows on from a seasonally adjusted increase in employment of 4,300 (+0.2 per cent) in the second quarter, and an increase of 700 (0 per cent ) in the first quarter.

“We are seeing a turnaround in a number of key sectors which are servicing the domestic economy,” Minister for Finance Michael Noonan said.

“Encouragingly 7,000 jobs have been created in the construction sector and another 1,600 in related activities such as insurance and real estate.”

“The Irish Economy is growing strongly and most importantly jobs are being created. Budget 2015 was designed to strengthen and broaden this recovery to families across the country.”

Mr Noonan said the changes to income tax announced in the budget will deliver, for the first time since January 2008, an increase in the pay packet for every worker paying income tax or universal social charge.