THE LABOUR market is weakening sharply, with the latest official figures showing the biggest year-on-year percentage increase in the jobless total for 25 years. Una McCaffreyreports.
The Central Statistics Office said yesterday that 12,000 people joined the live register in March, bringing the number claiming unemployment benefit to 199,900. This is close to the level forecast by the Department of Finance for the end of this year.
The live register is at its highest point for nine years and conditions in the jobs market appear to be worsening. The March figures also suggest that the construction sector is no longer the main culprit for job losses, as had appeared to be the case earlier in the year because of the growing numbers of male claimants.
Last month's increase was, by contrast, evenly spread between men and women.
"We know that females account for only 5 per cent of employment in construction, so it seems clear that conditions have deteriorated somewhat in the rest of the labour market," said Rossa White, an economist with Davy Stockbrokers.
The March rise brings the increase in the live register for the first three months of the year to 28,300, or 16 per cent. The last time a quarterly jump of this size was recorded was in 1975. The monthly increase of 12,000 in the register was the largest since it was established in 1967.
The CSO said that while the live register is not designed to officially measure unemployment, the latest data pointed to an unemployment rate of 5.5 per cent, compared with 5.2 per cent in February.
The proof of a deteriorating jobs market came as the Central Bank reduced its forecasts for economic growth this year, citing a slowdown in domestic demand. It now expects the economy to expand by 1.9 per cent in 2008, down from a forecast of 2.6 per cent three months ago.
Brian Cowen, the Tánaiste and Minister for Finance, chose to dwell on the Central Bank's belief that conditions will improve next year, saying the economy's "fundamentals remain healthy". "By following the right policies now, by holding our nerve, we will come through the current situation with our economic fundamentals intact," he said.
Fine Gael employment spokesman Leo Varadkar accused the Tánaiste of "reckless" management of the economy. "This is a grim way for Brian Cowen to head into his role as future taoiseach," Mr Varadkar said.
Labour's Willie Penrose said Mr Cowen must "accept a great deal of responsibility" for the decline in construction in particular.
A regional breakdown pointed to a grim employment picture in the Midlands, where claimant numbers were up almost 40 per cent year-on-year in March. Kildare, Meath and Wicklow also fared badly.