Unemployment rate on course for 15% by year end

IRELAND’S unemployment rate continues to edge towards 15% with figures showing the highest number of people signing on the dole since the start of the year.

According to the Central Statistics Office (CSO), the unemployment rate rose from 14.7% to 14.8% last month. The number signing on increased from 440,800 to 443,400, the largest increase since August.

This compares with an unemployment rate of 13.2% in May 2010.

There was a monthly increase of 2,200 men signing on with 400 women also joining the Live Register last month. In the year to May, however, the number of male claimants fell 2,095 to 288,290 (-0.7%) while the number of women signing on increased 5,120 to 152,657 (+3.5%).

The number of long-term claimants increased by 36,433 (+39.3%), while the increase for females was 13,836 (+41.4%), giving an overall annual increase of 50,269 (+39.9%).

There were 84,933 casual and part-time workers signing on last month, representing 19.3% of the total Live Register.

In the year to May, the number of people aged 25 and over on the Live Register increased by 7,677 (+2.2%), while the number of persons aged under 25 fell by 4,652 (-5.4%).

Chief economist with Bloxhams, Alan McQuaid, said the figures were “disappointing”.

“Whether or not the unemployment rate hits the 15% mark this year is now very close to call, but if it doesn’t it will be mainly due to increased emigration and more people staying on in education rather than a real underlying improvement in employment conditions.”

Economic adviser to the Irish Congress of Trade Unions, Paul Sweeney, said the jobless rate was a clear indication of the failure of the austerity programme and proof of the need for a policy change, at both European and domestic levels.

“Deflation is simply not working and is leading directly to job losses. This is not the route to recovery, but leads precisely in the opposite direction. It is time that the authorities at the EU level and here at home stopped taking counsel from the advocates of austerity. It doesn’t work. Today’s figures are proof positive.”

Director of Social Justice Ireland Fr Seán Healy said while recent initiatives focused on improving job creation and protecting jobs were very welcome, they should not create an illusion that Ireland’s unemployment crisis will be resolved in the near future. “The transition from near full employment to high unemployment has been a significant and shameful story in the current recession,” he said.

Jobs Minister Richard Bruton said the figure “proves we have to have a reform agenda that the notion that you can continue with existing policies and get different outcomes in terms of employment growth is not going to work”.

“We have to have a radical reform agenda across so many areas, whether it be reform of costs like legal costs, reform in statutory wage setting mechanisms, reform in access to finance.

“We’re going to have to reform legal fees which are among the highest in the land, to reform the medical area, which are also high paid people, we have to reform the banking system which we’ve already done.

“But we’re also going to have to reform wage setting mechanisms that were created in a different time and different era that create obstacles to creating employment.”

Mr Bruton said that after consulting with social partners, trade unions and employers, he would produce a final report on overhauling wage setting agreements by June 21. Legislation will then be rolled out afterwards and probably before the Dáil summer recess to implement the changes.