The number of people claiming unemployment benefit rose again in July, topping the near three-year high reached in June, though economists remained upbeat, saying that outside of the housing sector the labour market remains resilient. Claire Shoesmithreports.
On a seasonally-adjusted basis the live register, which measures the number of people claiming jobseekers' benefit and assistance, rose to 163,000 in July, an increase of 800 on the previous month and the highest level since September 2004, according to the Central Statistics Office (CSO). The increase of 800 compares with a gain of 2,500 in June.
On an unadjusted basis, the number of people on the register rose by 8,230, equal to 3.4 per cent year-on-year and the biggest annual increase since late 2003. however, economists were quick to point out that it is normal for the figure to increase over the summer months as Leaving Cert students and some temporary workers sign on.
Despite the increase, which brings the standardised unemployment rate to 4.6 per cent, economists were upbeat, saying that while this may show a trend towards an increase in people out of work, the live register is not a measure of the actual number of people unable to find work as it also includes part-time, seasonal and casual workers.
Davy economist Rossa White said the data shows that on the whole the labour market is still firm. He said he had been expecting a bigger percentage increase on the month and that the figures show that the pace of deterioration in the labour market due to housing-related layoffs is slow.
Last month, the broker said that job losses in the construction sector will push unemployment to 5 per cent by the end of the year.
Labour Party Senator Alan Kelly said yesterday's figures mean that the numbers on the live register have increased by more than 20,000 in two months. He said this cannot be dismissed as a blip and called on the Government to take a more proactive approach to job creation.
Separately, figures released by the Department of Enterprise, Trade & Employment showed that 2,305 people were made redundant last month, a near 12 per cent increase on July 2006.
This takes the number of redundancies so far this year to 15,054, an 8 per cent increase over the same period last year.
The service sector was worst affected in July, although 329 jobs were also lost in the areas of building and civil engineering.
