Unemployment claims rise at sharpest pace since April 2003

The number of people claiming unemployment benefit rose more sharply last month than at any point since April 2003.

Seasonally adjusted figures released yesterday by the Central Statistics Office (CSO) show that 2,900 workers joined the Live Register of jobless workers in June.

This brought the total number of people claiming jobless benefits to 169,300 - the highest level recorded for four months.

This translated into an estimated unemployment rate of 4.4 per cent, up slightly from 4.3 per cent in June.

The Live Register had been following a broadly declining trend for a year until the latest jump, aside from a small monthly climb in May. However, economic analysts cautioned against heralding the beginning of another rising trend in the number of jobless claimants.

On an annual basis, the Live Register had 8,000 fewer claimants in July than in the same month of 2003.

Economists at Davy Stockbrokers said the increase between June and July was probably more of a "temporary blip" than a sign of the return of higher unemployment. They believe the year-long trend of falling numbers will resume over coming months.

Notified redundancies - although not always the best barometer of the jobs environment - marked a clear annual decline in June and July, they say.

"This lagging variable may feed through to the Live Register during the third quarter," the economists suggest.

Opposition political parties were less upbeat, however.

Labour described the figures as "disappointing", with the party's spokesman for enterprise, trade and employment, Mr Brendan Howlin, calling for more action on unemployment and job creation.

"There is also clearly a need for a more balanced regional approach to industrial development as some areas appear to be bearing the brunt of job losses but are losing out when it comes to job announcements," Mr Howlin said.

He called for early implementation of the recommendations of the Enterprise Strategy Group on lifelong learning and training.

Fine Gael's Mr Phil Hogan said the upward movement in the live register was "very worrying" against a backdrop of rising oil prices and higher inflation

Pointing to sharper jobless increases in the midlands than in Dublin, Mr Hogan said the Government was "obviously not concerned about spreading economic growth around the country".

The Irish National Organisation of the Unemployed expressed concern about the gender balance of the July increase in the overall register, with 3,000 females signing on and 100 males departing.

Its general secretary, Mr Eric Conroy, said many of the new female claimants had been involved in manufacturing companies that had "folded".