Number with jobs falls by largest degree since 1991

CSO UNEMPLOYMENT DATA:THE NUMBER of people employed fell in the second quarter of 2008 by the steepest amount since 1991, new data from the Central Statistics Office (CSO) reveal.

Accelerating job losses in the construction sector were to blame for an increase in the official unemployment rate up to 5.1 per cent.

The number of full-time jobs in the labour market dropped by 4,300 in the year to April 2008, according to the CSO's Quarterly National Household Survey. This compared to annual full-time employment growth of 18,400 recorded in the previous quarter's survey,

As it was the predominantly male-dominated sectors where the job cuts were highest, all of the rise in unemployment and drop in employment occurred among male workers.

Full-time employment among men fell by 19,500. The last time there was a drop in male employment was in 1992. There was an increase of 15,200, meanwhile, in the number of women in full-time employment.

Male unemployment rose by 18,000, while female unemployment fell by 2,800.

There were 115,000 people unemployed in the March-May quarter, an increase of 15,200 compared to the same period in 2007.

Siptu research officer Marie Sherlock said this figure masked job losses of 37,500 in the traditional manufacturing and construction sectors over the year.

There was also evidence that the shape of the labour market is changing as a result of nervous employers stopping short of offering full-time positions. The number of part-time jobs increased by 11,100 over the period, meaning overall employment increased by 6,900, or just 0.3 per cent over the year.

There are now 26,800 fewer workers employed in the construction sector than there were in the second quarter of 2007.

The figures could be even higher, the CSO said, as a 6,900 increase in the number of self-employed people in agriculture was probably the result of layoffs from rural construction firms.

David Croughan, economist at Ibec, said the loss of construction jobs, while regrettable, was expected, but the fall in manufacturing employment emphasised the very difficult environment in which Irish exporters now operated.

Jobs in the wholesale and retail sector are still growing by 13,000 annually, but with retail sales falling in recent months, this trend may not last.

Economists predicted that more recent bad news for the jobs market would make future CSO surveys even more bleak reading, as the economic climate has deteriorated since this survey was taken in mid-April.

Based on the Live Register of people claiming jobseekers' benefits last month, the CSO estimated that the standardised unemployment rate had reached 5.9 per cent in July.

The unemployment rate is expected to average at 5.5 per cent this year. The March-May seasonally adjusted rate of 5.1 per cent compares to a rate of 4.8 per cent in the previous quarter and a rate of 4.6 per cent in March-May 2007.

However, the Republic's unemployment rate is still well below the average of 7 per cent for the 27 EU states.