FÁS: 2008 jobless rate to hit 5.5%

FÁS expects unemployment to rise this year and next, with the construction sector bearing the brunt of the increase.

In its quarterly labour market report, the State job training agency says unemployment will jump by 20,000 to 124,000 giving an average unemployment rate of 5.5%, compared to 4.6% in 2007 while also forecasting a further increase to 6.6% in 2009.

The main reason for the extra numbers joining the dole queue this year is the slump in the construction market, and FÁS says employment here could be down 37,000 from its peak. This is a much higher forecast than that of most economists, who said that 10-20,000 jobs could go.