Unemployment rate falls to lowest level in more than 3 years

The unemployment rate is now at a three-and-a-half-year low, but experts have warned this could be attributed to high emigration rates and not an increase in jobs.

The latest review of the labour market from the CSO showed a 3,200 drop in the number of people on the dole, as 13.5% of the nation’s workforce signed on to the Live Register in July — down from 13.6% the previous month.

This was the lowest rate of unemployment recorded since Mar 2010. It hit its highest point of 15.1% in Feb 2012.

According to the CSO, 419,200 claimants signed on for unemployment and job-seeking benefits during July, down from 422,400 the previous month and a drop of 17,600 from Jul 2012.

Mark Fielding, chief executive of the Irish Small and Medium Enterprises (Isme) association, accused the Government of turning a deaf ear to the jobs crisis by buying into the idea that Ireland has entered a period of stabilisation.

“Our unemployment figures would be significantly higher were it not for youth emigration — hardly a point of honour for this current administration,” he said.

“This prolonged period of emigration, overseen by our pied piper government poses an immediate threat to our recovery as our well educated and skilled young people bring their valuable experience elsewhere.”

The latest CSO statistics also revealed that men were largely accountable for the drop in social welfare claimants.

About 2,200 fewer males signed on in July from the previous month. This compared with a drop of 900 women.

The Live Register figures include unemployed, some part-time workers as well as seasonal and casual workers entitled to job-seeking benefits. They showed that the number of long-term claimants — those who have been signing on for more than 12 months — stood at 197,571 in July.

The vast majority of that number was male, with 136,363 being classed as long-term claimants.

However, the number of male long-term claimants did decrease by 5,238 from Jul 2012, while the number of females increased by 2,723.

This resulted in an overall annual decrease of 2,515 people claiming benefits for more than one year.

There were also 8,171 fewer young people — aged under 25 — signing on in July this year compared with the same time last year.

The Small Firms Association said while the apparent reduction in youth unemployment was positive, more still needs to be done to tackle the crisis.

Acting director Avine McNally said: “This reduction is being influenced by emigration.

“Active labour policies are only part of the solution in reducing youth unemployment. A strong commitment and focus on education, growth and recovery is vitalto ensure young people have future careers in Ireland.”

She also urged the Government not to tax workers in October’s budget for 2014 and claimed re-skilling and re-training the long-term unemployed would help improve the quality of Ireland’s workforce.