Job creation at highest in five years

THE Irish economy is maintaining its dynamic performance with new figures showing the creation of 87,000 jobs last year - the highest annual increase in five years.

The jobs hike represented an overall growth rate of 4.7% in employment during a year when the number of migrant workers here from the 10 new EU countries more than doubled.

With the workforce at just under two million, migrant workers make up 9% of the labour force - that’s up by 2% from 2004.

The figures were revealed in the latest quarterly National Household Survey published by the Central Statistics Office.

CSO director Gerry O’Hanlon said that with the exception of the food sector, there was no evidence of Irish workers being replaced by migrants.

A total of 1.98 million people were working in the final quarter of 2005. With seasonal factors taken into account, the number was 17,500 higher than in the previous three months.

The CSO figures placed Ireland as the best economic performer in Europe with employment growth rates three times the EU average.

There are now 253,000 foreign nationals of working age in the State, of whom 12,000 are unemployed.

The number of workers coming from the new EU states more than doubled in the past year to 65,000, compared with just under 30,000 in 2004.

Foreign nationals account for 10% of all workers in the construction industry and 21% of all employees in hotels and restaurants.

Increased labour force participation was most noticeable among females, with 30,000 married women entering the job market.

It is estimated that 62.2% of the active population is in the labour force compared with the 57% EU average.

On a less positive note, the number of unemployed increased by 5,700 last year to 91,300. Nevertheless, the Republic’s unemployment rate of 4.5% remains the lowest in the EU.

Strong employment growth was recorded last year across all sectors - excluding manufacturing - which lost 12,900 jobs.

The construction industry remained one of the strongest engines of growth, adding an extra 25,800 jobs, while 19,600 jobs were also created in the wholesale and retail trade.

The average working week also fell slightly in 2005 to 36.9 hours.

Government Chief Whip Tom Kitt said the CSO figures provided robust endorsement of the Government’s pro-jobs policies.

However, warning against complacency in the labour market, he added: “It’s important that a firm focus must continue to be fixed on maintaining and promoting competitiveness.”