Employment growth had slowed before major job losses

Employment growth had begun to slow during the March to May period even before most of the major job-loss announcements from …

Employment growth had begun to slow during the March to May period even before most of the major job-loss announcements from US multinationals, according to Central Statistics Office (CSO) figures.

The latest Quarterly National Household Survey indicates that foot-and-mouth disease was a key factor slowing employment growth in the three months to May 2001.

The survey, however, was completed too early to have been seriously affected by the recent slowdown in the hightech sector. The more recent job-loss announcements will not be officially recorded until the release of third-quarter data by the CSO in November.

Overall, there were 1.72 million in employment in the three months ending May, an increase of 45,800 on the same period last year. This annual rate of increase was 13,500 lower than the 59,300 annual increase recorded in the previous survey taken between December 2000 and February 2001. It was also almost 34,000 lower than the rise of 79,600 recorded between the second quarters of 1999 and 2000, when jobs growth was exceptionally strong.

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Despite rising numbers at work, the unemployment rate remained static at 3.7 per cent, the same as during the first three months of the year and down from 4.3 per cent in the same period in 2000.

Over two-thirds of the annual decrease of 9,500 in the numbers unemployed was accounted for by a fall in the numbers of long-term unemployed, according to the CSO. The number of long-term unemployed is now 20,500, 1.2 per cent of the labour force.

Looking at the regional breakdown, there was a 3.7 per cent annual increase in the Border, midlands and west regions, targeted by the Government for development, compared with 2.7 per cent in the more developed south and east.

Employment grew over the year in most sectors. However, employment over the year fell by about 10,000 in the agriculture sector and by some 4,000 in hotels and restaurants, both sectors affected by foot-and-mouth.

According to the CSO, employment among the under-25s declined significantly as many students lost jobs in the hotels and restaurants sector.

In contrast, employment in the education and health sector rose by some 10,000, according to CSO director Mr Gerry O'Hanlon.

The construction sectors also continued to grow strongly with an additional 13,900 jobs, while wholesale and retail grew by 12,000 jobs.

The numbers in part-time employment grew by 3,700 to 284,300. This was made up of an increase of 9,500 women and a decrease of 5,800 men. Over 36 per cent of women work for less than 35 hours a week compared to 7.6 per cent of men.

The numbers working 35 to 39 hours a week increased by 47,100 in the year, while the number working 45 hours or more decreased by 4,900. The average working week was 37.9 hours compared with 38 hours a year earlier and 38.1 hours in 1999. For men the average working week was 42 hours and for women it was 32.5 hours.

Overall, the labour force - the number of people at work or seeking work - increased by 36,300 in the year to reach 1.78 million. The participation rate for men at 70.9 per cent was down slightly on the previous year while the rate for women increased from 47.2 per cent to 47.5 per cent. This is very close to the EU average of 46.9 per cent.

The general secretary of the Irish National Organisation of the Unemployed, Mr Tony Monks, said the figures indicated an overall slowdown in jobs growth.

"Government must take definitive steps to ensure that those already suffering unemployment are not left on the edges of the labour market," he said. "Every effort must be made to deliver sustainable employment in the regions of the country which have seen little benefit from the recent years of jobs growth."

The Minister for Social, Community and Family Affairs, Mr Ahern, welcomed the figures despite the fact that they showed growth had slowed in most sectors. Of the recent redundancies in the high-tech sector, he said he was confident those who lost jobs "will not be without work for long".