Live Register - Employment situation is still dire

WHILE welcoming the tiny glimmer of light at the end of a depressingly long dole queue, it should be greeted with a measure of caution.

According to the Central Statistics Office, the latest figures reflect the first annual decrease in the Live Register in four years. Given the climate of doom and gloom, that is a positive development. But with 442,200 people still on the dole it would be misleading to see it as a dramatic turnabout.

One of the most depressing aspects of the CSO figures is the continuing rise in the number of long-term claimants on the dole. During the past 12 months almost 42% of claimants were on the Live Register for a year or more, an increase of 9%.

Rather than seeing an underlying improvement in employment conditions here at home, economists view the CSO figures as a sign that more people are returning to education or emigrating. Tragically, there is no magic solution for the unemployment problem. Until the economy starts to grow again on a consistent basis, there is unlikely to be any real movement on the jobs front. Despite the latest statistical improvement the situation is dire.

With more austerity cutbacks looming in the budget, it is difficult to see how the economy can grow — and until it does the endless dole queues will persist.