Boost for Coalition as employment at seven-year high

The Government received a timely boost ahead of Friday’s general election with official figures showing employment at its highest level in seven years.

However, the figures also recorded a slowdown in the rate of employment growth in the final quarter of last year and coincided with a warning from employers’ group Ibec that businesses are increasingly concerned about instability after the general election.

“Irish business can create a further 60,000 new jobs in 2016, but hiring plans could be threatened if the election results in an unstable or anti-enterprise government,” Ibec chief executive Danny McCoy warned in a statement that represents Ibec’s most significant comment to date on the general election.

The latest Quarterly National Household Survey indicated employment across all sectors rose by 44,100 last year, a growth rate of 2.3 per cent. The figures show overall employment in the State at 1.98 million, its highest level since the first quarter of 2009. Employment increased by 4,700 (0.2 per cent) in the final quarter of 2015.

Slowdown

However, this represented a slowdown in the rate of employment growth on the three previous quarters, which were 0.5 per cent, 0.8 per cent and 0.7 per cent. The survey, considered the most accurate barometer of conditions in the labour market, shows the State’s overall jobless rate dropped to another six-year low of 9.1 per cent at the end of last year.

In terms of regions, Dublin had the lowest unemployment rate of 7.6 per cent while the midlands and the west had rates of 10.9 per cent and 10.6 per cent.

The figures show recovery moving on to a broader geographic footing with the numbers at work increasing in seven of eight geographic regions compared with five out of eight in 2014. The exception last year was the west which saw a decline of 0.6 per cent.

Employment increased in 12 of the 14 economic sectors over the year with the largest increase recorded in construction (8.5 per cent). The greatest decline was recorded in financial, insurance and real estate activities (3.9 per cent).

The number of persons classified as long-term unemployed, meanwhile, decreased by 21,300 (17.2 per cent), bringing total long-term unemployment to 102,100. Nonetheless, the number still accounted for 54.5 per cent of total unemployment, albeit this was marginally lower than the 57.8 per cent recorded a year earlier.

The State's youth unemployment rate fell from 20.3 per cent to 18.9 per cent over the period. Minister for Jobs Richard Bruton said an annual employment growth rate of 2.3 per cent put Ireland right at the top of international jobs growth tables.

Strong performance

“What is most welcome is the wide range of sectors showing growth and this growth is underpinned by a strong performance by our expert oriented companies,” he said.

“The challenge now is to continue to support our entrepreneurs and workers with continued policies as they continue to grow jobs and get our economy and country back on track,” Mr Bruton added.

Ibec's statement pointed to other EU countries, such as Greece or more recently Portugal, where it said "the failure to put in place stable pro-enterprise government has had a very direct and damaging impact on their economies".

Ibec said its 7,500 members were increasingly concerned that post-election political instability could undermine confidence in Ireland’s recovery internationally, raise borrowing costs and damage job creation.

“Uncertainty is the enemy of business”, said Mr McCoy, making it more difficult to plan ahead, make investment decisions and create jobs.

“. . . We are now rapidly reducing unemployment and generating the tax revenue needed to support investment in public services and vital infrastructure. It is vital that this positive trend continues.”