More job losses ‘inevitable’ as 2,900 join Live Register

ECONOMISTS have warned that more job losses are “inevitable” as Live Register figures for May show the highest monthly increase since July last year.

Figures from the Central Statistics Office (CSO) show that 2,900 people joined the register last month, bringing the total number to 446,800. Men accounted for 2,000 of the increase.

The standardised unemployment rate for June was 14.2%, up slightly from 14.1% in May. The average unemployment rate during 2010 was 13.6%.

The number of long-term claimants increased by 49,448 in the year to June, bringing to 40.8% the number of claimants that have now been on the Live Register for one year or more.

In June last year, long term claimants made up a little more than 30% of the total.

Davy have said long-term unemployment is now becoming a “severe problem”.

The latest figures come as the Government announced its two-year Job Bridge programme. The scheme will offer work placements to 5,000 people on the Live Register.

Chief economist with Bloxham’s, Alan McQuaid, said more job losses were “inevitable” given the current climate and that it will be late 2011 “at the earliest” before there is any improvement in employment conditions.

“While the new internship initiative to take people off the Live Register is welcome, it is only a small step, and more radical measures will be needed if the jobless rate is to get back into single digits in the medium-term,” he said.

IBEC chief economist Fergal O’Brien said one of the main reasons for the jobs drain is that consumers are afraid to spend.

“The labour market remains very weak. Jobs are still being lost in the domestic economy even though many export firms are rehiring again.”

“Over 40% of those on the live register have been looking for work for over a year and the problem of long-term unemployment is growing rapidly.”

Assistant director of the Small Firms Association, Avine McNally, said the figures were “very disappointing” but welcomed the Job Bridge programme.

Chief executive of the Irish Small and Medium Enterprises Association, Mark Fielding, described the figures as “appalling” and said tough and unpopular decisions were needed to help stimulate employment.