Live register shows jobless rate has hit 11.9 per cent

The estimated rate of unemployment rose to 11.9 per cent in June as the number of unemployment benefit claimants grew by 11,400.

The latest seasonally adjusted live register shows that 413,500 people claimed jobseekers’ benefit or assistance payments last month the highest on record, according to figures from the Central Statistics Office (CSO). The estimated unemployment rate of 11.9 per cent is the highest since April 1996.

Over the last year there was an unadjusted increase of 197,781 people on the register, a rise of almost 90 per cent. Last month 7,700 men and 3,700 women joined the live register.

The estimated rate of 11.9 per cent unemployment compares with the 10.2 per cent recorded by the latest Quarterly National Household Survey for the first quarter.

NCB economist Brian Devine said the pace of job losses had moderated during each of the last six months from a high of 33,000 in January.

He said 18.7 per cent of the labour force was now on the live register, and said this was up from 7.2 per cent in 2007.

Dr Ronnie O'Toole, National Irish Bank chief economist, said there were signs that the rate of job losses had peaked with the June increase of 11,400 the smallest since September 2008.

He said unemployment among migrants from Eastern Europe was running at 20 per cent, or double the rate for Irish nationals.

Dr O'Toole said the re-emergence of emigration was evident in QNHS data released last week. “For every one Eastern European worker who has joined the dole queue over that twelve months, almost two have emigrated”.

The main reason for the rise in joblessness was the collapse in the construction sector with Dr O’Toole saying the almost half the 73,000 decline to February was due to the construction industry.

Manus O’Riordan, Siptu's chief economist, said today's rising unemployment figures should serve as a warning to those calling for more wage cuts.

“It is now five months since I specifically warned that the slump in consumption due to attacks on living standards would see unemployment reach half a million this year”, he said. “Sadly, this is now coming about.

Director of the Small Firms Association Patricia Callan said the level of job losses was now at “crisis point”, and called for “decisive action” from the Government.

Fine Gael enterprise spokesman Leo Varadkar said Ireland’s unemployment rate was now the second highest in Europe, behind Spain.

“This is further evidence that Ireland is experiencing a much deeper recession than any other country. This is due to a decade of gross economic mismanagement under Fianna Fáil.”

Labour Party spokesman on enterprise, trade and employment Willie Penrose described the jobless situation as a "runaway train" that could threaten economic recovery.

"The cost in terms of lost tax revenue and additional social welfare of the 200,000 who have been added to the live register in the last year amounts to around €4 billion. This is close to the €5 billion that the McCarthy Group has been asked to identify in cuts in public expenditure," he said.

"It is clear that we will never see economic recovery until we stop the job losses and get the unemployed back to work, yet there is absolutely no sense of urgency in the government's approach."