Construction downturn blamed for unemployment rise

The downturn in construction was today blamed for the highest unemployment levels in eight years.

Some 4.9% of the workforce were out of a job in January - the worst rate since December 1999.

Labour Party leader Eamon Gilmore said the figures were alarming, and called on the Government to act.

Experts believe construction has borne the brunt of a slowing economy with firms laying off staff in the New Year as house building drops.

That was compounded last month with biscuit maker Jacob Fruitfield announcing 220 job cuts, 100 losses at iQon Technologies in Dundalk, Co Louth and pharmaceutical giant Allergan's decision to close its Wicklow plant with the loss of 360 jobs.

"What is worrying about the Allergan closure is that the plant is moving because business is so good," said Bríd O’Brien, senior policy officer with the Irish National Organisation of the Unemployed.

"This move is happening when other data suggests that manufacturing activity is decreasing. This apparently contradictory picture raises serious challenges for

"Ireland in terms of upskilling people for potential employment developments and from where these developments will come."

Meanwhile, 1,500 workers at north Dublin aircraft maintenance firm SR Technics are anxiously awaiting news of their future as Aer Lingus assesses new contracts.

Mr Gilmore said the Finance Bill, published yesterday, offered no initiatives to deal with the troubled economy.

"The Government needs to be far more pro-active in terms of identifying jobs at risk and in attracting new industries to Ireland," he said.

"Given the difficult economic situation internationally, we can no longer assume that multi-national companies are going to come to Ireland and the Government and the industrial agencies need to be out there fighting for every job."

The Central Statistics Office report on the Live Register showed more than 181,000 people signed on for benefits last month.

The survey said in the year to January 2008, there was a 14.3% increase of 22,697 compared with a 9.6% increase of 14,987 in the year to December 2007.