Rise in unemployed ‘not a concern’

DAVY STOCKBROKERS said yesterday that the 1.4% month-on-month rise in unemployment claimants seen in September is not a concern.

According to analyst, Rossa White: “The Live Register total is at a three-year high, but as the labour force has increased significantly over that period, the comparison is hardly worrying. The 1.4% rise was not a drastic increase by any means. We are encouraged that the deterioration in labour market conditions is only gradual.

“There are a number of reasons to explain why unemployment claimants are increasing very slowly. Workers in the building sector are possibly being hoarded in the anticipation of a pick-up in demand. The labour force has responded quickly, as the pace of immigration has slowed. That would be positive because it implies that the unemployment rate will not climb too much,” he said.