Hanafin says dole figures ‘encouraging’ despite monthly rise

AN extra 900 people joined the dole queues in November, after the previous month’s figure showed the first decline in the numbers signing on in two years.

According to latest figures from the CSO, the seasonally adjusted Live Register total increased from 422,500 in October to 423,400 last month. The monthly increase consisted of an increase of 1,700 men and a decrease of 900 women.

The average weekly increase in November was 225 people, which compares with a weekly decrease of 600 the previous month. However, despite last month’s rise, the unemployment rate has remained static at 12.5%.

Social and Family Affairs Minister Mary Hanafin described the figures as encouraging and said they offered grounds for hope.

Ulster Bank economist Lynsey Clemenger said the figures painted a less negative picture of the Irish labour market than previously feared.

Ms Clemenger predicted the average number on the Live Register this year to be below 400,000, some 40,000 lower than the Government forecast in the April budget. This could reap annual savings to the tune of around €880 million.

“Given that employment in the economy is probably still falling, it may be a little premature to be confident that the unemployment rate has peaked.

“Our base case has been it will peak between 13.5% and 14% by the middle of next year. Today’s figures make this scenario look overly pessimistic,” she said.

ISME chief executive Mark Fielding said the Government needed to act to address the “dire unemployment situation”.

“Is it too much to ask our Government to take these figures seriously and stand up to the greedy public sector unions who seem hell bent on bankrupting the country?

“The disastrous unemployment figures confirm the continuing haemorrhaging of private sector jobs, while the public sector are allowed to maintain their undeserved, elevated and cosseted status,” he said.

Construction Industry Federation (CIF) director general Tom Parlon said the numbers on the dole will continue to rise next year, if the cuts to the Government’s capital construction programme go ahead.

Labour spokesman on employment Willie Penrose said despite the unemployment rate holding steady in November, almost 150,000 people have signed on the dole in the past year.

“It is clear that renewed emigration is acting as a pressure valve and has led to a slowing down in the numbers signing on, but this may prove to be temporary given the traditional pattern of significant increases in numbers out of workduring the winter months,” he said.