Monthly job losses worst for 16 years

UNEMPLOYMENT figures will continue to rise, experts warned yesterday as figures showed almost 600 people started signing on the dole every working day last month.

By the end of June, nearly 12,000 more people were claiming assistance than at the beginning of the month. Taking seasonal factors into account including the usual lay off of temporary workers in schools and colleges there were an additional 4,800 people out of work.

The rise is the worst monthly increase for over 16 years.

Central Statistics Office figures yesterday show the total number of people on the Live Register stood at 177,852. The official unemployment rate is now 4.7% - up from 4.5% at the beginning of the year.

"Both the unadjusted and seasonally adjusted figures are quite frightening but not terribly surprising," said Jim Power, chief economist with Friends First. "I predict the unemployment rate will probably hit 5.7% by year's end. That means a lot more jobs are to go," he said.

Tánaiste and Minister for Enterprise, Mary Harney, said: "The rise reflects the difficult international economic environment and the problems which this causes for an open, trading nation like Ireland."

Fine Gael spokesman on enterprise, Phil Hogan said: "We are now heading for over 200,000 unemployed by the end of the year. It is now accepted by all FF and the PDs squandered the boom."

The general secretary of the Irish National Organisation of the Unemployed, Eric Conroy said he was gravely concerned.

"The short-term future looks very bleak for jobs. It is imperative the Government makes every effort to provide alternative job opportunities for the unemployed."

The Small Firms Association said up to 500 jobs are lost in the manufacturing industry every month.