Unemployment hits another post-crash low of 7.7%

Ireland’s unemployment rate fell to another post-crash low of 7.7 per cent last month. The latest official figures show the number of workers classified as unemployed in October was 168,800, equating to an annual decrease of 29,000 or 1.5 per cent.

The seasonally adjusted jobless rate for males was 9 per cent last month, while the rate for females was 6.2 per cent. The State’s youth unemployment rate was 15.1 per cent in September, down from the 15.9 per cent recorded the previous month.

Although emigration has played a significant role in keeping unemployment down since the financial crisis, labour market conditions have improved in tandem with economic recovery.

Minister for Social Protection Leo Varadkar said the figures, alongside positive exchequer data, was “proof positive” that the economy was still on track despite Brexit uncertainty. “Since coming to government we have almost halved unemployment, and my objective for the next few years is to halve it again.”

Davy analyst David McNamara noted the monthly reduction in October was 4,400, following a 7,200 decrease in September. “These large declines suggest that the recovery in the labour market accelerated over the autumn period, but we would caveat that the data have been revised considerably in recent quarters when the full quarterly national household survey has been released.”

Jobs growth

Mr McNamara said recent surveys suggest that jobs growth has continued at a solid if slowing pace. The impact of Brexit and currency movements could, however, hit sectors exposed to trade with the UK.

Merrion economist Alan McQuaid said employment rose in 12 of the 14 economic sectors on an annual basis and fell in the other two in the quarter. The greatest rates of increase were posted in the administrative and support service activities (+9.9 per cent or 6,300) and construction (+8.7 per cent or 10,900) sector.

Mr McQuaid also warned the outlook from next year on was more uncertain in light of Brexit.