Annual unemployment rate falls for first time since 2005

The annual unemployment rate has fallen for the first time since 2005 as new figures show the number of people out of work fell by 1.1% in the third quarter of 2012.

Latest jobless figures from the CSO show unemployed numbers fell by 3,600 between July and September, to 324,500. It represents an unemployment rate of 14.8% — one of the highest within the EU.

However, any positive news about the numbers out of work is offset by the fact that the number of people in employment has also continued to fall, albeit at a slower rate than at any time over the past year.

The CSO’s latest quarterly national household survey shows there was a 4,300 reduction in the number of people with jobs during the third quarter of 2012. The total number of employed persons stands at 1,841,300 — an annual decrease of 0.2%.

The long-term unemployment rate, which measures people out of work for 12 months or more, also rose by 0.1% to 8.9% at the end of the third quarter, representing 193,00 people.

Six out of 10 people who are jobless are now classified as long-term unemployed compared to just 49% two years ago.

The CSO confirmed yesterday that it had revised jobless figures published earlier this year due to the results of the 2011 census which signalled the Irish population has grown by 8.2% since the previous census six years ago.

The drop in number of people at work was attributed almost entirely to a decrease in male employment particularly in the construction and transport sectors.

The survey also shows that 16,200 people left the public sector over the 12 months to Sept 2012 bringing the total remaining number of public servants to 377,900.

Employers’ group Ibec said the jobs figures provided further evidence of a stabilising labour market as well as demonstrating the capacity of the private sector to create jobs.

Ibec senior economist Reetta Suonperä said it was the first time since the start of the recession that there had been a number of positive indicators on housing, retail sales, and employment at the same time.

However, she admitted the economy remained fragile with the impact of external factors remaining highly uncertain.

The country’s largest trade union, Siptu, contradicted Ibec’s view claiming no stabilisation in the jobs crisis was yet in sight.

Siptu economist Marie Sherlock said the number in employment had hit “a depressing, new low” with young people the worst affected.