The number of people signing on the Live Register rose in May for the second consecutive month mainly due to recent job loss announcements. Figures for May show that, when adjusted for seasonal factors, the number of people on the register rose by 2,100 bringing the total seeking unemployment assistance to 141,600. This increases the unemployment rate from 3.6 per cent to 3.7 per cent in May.
The rise in April was attributed to lay-offs in meat factories and in the tourist sector because of foot-and-mouth restrictions. The Irish National Organisation of the Unemployed (INOU) said the additional numbers seeking work last month reflected recent redundancy announcements across a range of sectors.
INOU general secretary Mr Tony Monks said the increase was a concern. "An increase of 2,100 in one month is very substantial. If these figures develop into a trend, it will further question the Government's prioritisation of actively recruiting workers from overseas." He pointed out that 901 of the 2,100 new people signing on the register were affected by the foot-and-mouth restrictions.
The Labour Party spokesman on social, community and family affairs, Mr Tommy Broughan, warned the Government against complacency. "The foot-and-mouth crisis is no longer an explanation for this increase. Rather, the increase is accounted for by job losses right across a range of industries."
Meanwhile, the Small Firms' Association said the unemployment figures were masking a decline in demand for labour as concerns about inflation and the weakness of the euro were undermining confidence. In its annual summer economic statement the SFA said the foot-and-mouth crisis had eroded confidence in the tourism sector with revenue losses estimated at £500 million (€635 million) for 2001.
The NCB Purchasing Managers' Index has recorded some modest expansion in the manufacturing sector in May, signalling some slowing down in activity. NCB said a further rise in overall output and employment were the main causes of the latest modest expansion of the manufacturing sector. In contrast, falling demand was primarily responsible for the manufacturing sector's slower growth rate.
