Jobless rate declines to 14.2%

The number of people signing on to the Live Register in January fell by 3,200, and the unemployment rate also fell marginally, new data from the Central Statistics Office (CSO) showed today.

The seasonally adjusted Live Register total now stands at 439,600, a fall of 0.7 per cent compared with December last year.

The standardised unemployment rate also dipped during the month, falling to 14.2 per cent from 14.3 per cent a month earlier. The Live Register also includes those who work part time, on a seasonal basis and casual workers.

On an annual basis, the register was 2,300 lower than in January 2011, when 441,900 people were signing on.

Over the year, 8,110 few male claimants signed on, a 2.8 per cent decrease, leaving a total of 283,893 in January. This was offset by a rise in the number of women signing on, with a 3.3 per cent rise to 155,696 over the year.

However, analysts noted that the declining labour force participation had some impact on unemployment rates.

"Even if the unemployment rate has fallen since Q3, this may not reflect a recovery in employment," said Davy chief economist Conall Mac Coille.

The figures also indicated that long-term unemployment remained a growing problem over the year. The number of those unemployed for longer than 12 months accounted for more than 183,000 out of the total figure, or 41.8 per cent. That compares with 36.3 per cent in January 2011.

The Irish Congress of Trade Unions said there was little comfort to be taken from the decline.

"The level of unemployment in Ireland is so high that it really is a national emergency. And the growing numbers of long term unemployed revealed in the CSO data - up by a substantial 24,000 in just one year - is very worrying," said congress economic adviser Paul Sweeney.

Business group Ibec called for the Government to make tackling unemployment its main objective, implementing "significant" stimulus measures.

"While it is positive to see some decline in the Live Register, the total number signing on remains exceptionally high. We urgently need a new approach from Government and the troika to get people back to work," said Ibec chief economist Fergal O'Brien.

"Significant investment in physical infrastructure and in training and education is needed to improve the quality of the workforce and lay the platform for recovery. New initiatives are needed to unlock domestic demand and encourage households that can afford to, to spend and invest rather than save."

That call was echoed by Isme, the Irish Small & Medium Enterprises Association, which demanded action from the Government.

“To date all we have had is announcement after announcement of Government promises, rather than actually addressing the causes of severe unemployment. With close to half a million people out of work we cannot afford to be wasting time and need to immediately implement the over promised and long fingered jobs plan," said chief executive Mark Fielding.

"This initiative needs to activate a coherent implementable strategy that will create verifiable jobs and not be just another wish-list, window dressed as a jobs plan.”