IBEC concerned with unemployment figures

IBEC, the group that represents Irish business, said today that the increase in unemployment, detailed in CSO's Quarterly National Household Survey, was a serious concern and highlighted the need for the new Government to take urgent action to address the problem.

CSO figures for the fourth quarter of 2010 show that, on a seasonally adjusted basis, employment fell by 16,200 in the quarter and the unemployment rate increased to 14.7% from 13.7% in the third quarter of 2010.

IBEC senior economist Ms Reetta Suonperä said: “The weakness in the labour market at the end of last year may have been exacerbated by the bad weather.

"The Christmas period is particularly important for the hospitality sector, which suffered a significant loss in trade because of the weather. The sector lost 3,500 jobs in the quarter, up from 2,000 in Q3 2010.

“On a more positive note, industry added a small number of jobs in Q4, for the first time since the onset of the recession. The manufacturing sector continues to perform well and will likely see a net increase in employment this year. On an annual basis, construction remains the main drag on employment, accounting for over 40% of jobs lost in the year to Q4 2010. The sector has now lost 60% of total employment from the peak. Long-term unemployment increased sharply and in Q4 2010 accounted for over 50% of total unemployment, up from a third a year earlier.

“The Government must take urgent action to ensure that structural unemployment does not become entrenched in the economy. Ambitious reform of labour market activation and retraining services is needed to ensure that those who have lost jobs get the skills to take up new work when the economy picks up."