Jobless claims highest in almost three years

The number of people signing on the Live Register in June rose to its highest level in almost three years, according to data released this morning by the Central Statistics Office (CSO).

The CSO report also found that the standardised rate of unemployment rose to 4.6 per cent last month, compared with 4.5 per cent in May, and is now at its highest point since September 2003.

The seasonally adjusted figures showed a monthly rise of 3,600 people on the Live Register, bringing the total numbers signing on to 163,400 - a level not seen since September 2004.

The CSO found that the number of females, at 1,900, narrowly exceeded the number of males who joined the register last month.

The unadjusted increase was 3,304 and compares with an unadjusted increase of 1,450 in the year to May.

Economists are watching labour data increasingly closely for signs that a slowdown in Ireland's once booming property market and lower levels of house building are spilling over into the rest of the economy.

The Live Register does not measure unemployment as it includes people on benefits who work part-time, seasonally or are casually employed.

Employers representative body Ibec said today that the data showed the Irish labour market is beginning to weaken for the first time in a number of years. However, it added that the construction sector is likely to feel the brunt of any slowdown.

Ibec economist Fergal O'Brien said: "The Live Register has now risen to its highest level in almost three years and the increase in June was much greater than expected. While there were increases in the Live Register in both April and May, the scale of the June increase confirms that the Irish labour market is experiencing some deterioration."

"The number of males on the Live Register is up 4,200 in the past year while the number of females has fallen by 900.

"This suggests that the jobs are being lost in sectors with a high proportion of male employment, such as construction. However, there is still plenty of evidence of unfilled vacancies and a buoyant jobs market in most other sectors of the economy."