'Shocking' March Live Register rise

There was another big jump in the number of people on the Live Register in March, according to figures from the Central Statistics Office. One economist described the figures as 'shocking'.

The seasonally adjusted figure rose by 12,000 from February to reach 199,900. This was the biggest rise on record. The unemployment rate jumped from 5.2% to 5.5%, a figure not seen since June 1999.

The headline figure showed an increase of 8,507 to 197,992, beating February's record rise of 8,000. This represented a 27% increase on the same month last year, the biggest monthly percentage rise since March 1983.

The increase in March was split evenly between males and females, a change from recent months, when males made up most of the rise. Economists say this suggests a wider deterioration in the labour market beyond the construction sector.

The figures were higher for all regions, with the biggest percentage increase of 7.2% coming in the south-east.

Friends First economist Jim Power described the figures as 'truly awful', adding that the speed and magnitude of the deterioration in the labour market was 'quite shocking'.

Ulster Bank economist Lynsey Clemenger said the bank would be revising its forecast upwards, as the unemployment rate had already hit the 5.5% it forecast earlier.

Davy's Rossa White said that up until last month, most of the rise in Live Register numbers could be explained by house builders being made redundant, but the 50-50 male-female split this time meant that could not be the case any longer. 'It seems clear that conditions have deteriorated somewhat in the rest of the labour market,' he added.

Goodbody's Dermot O'Leary said the figures confirmed a 'rather sudden' deterioration in the Irish labour market at the beginning of 2008.

Mr O'Leary also pointed to the sharp rises in the Midlands and Mid-East regions, suggesting that the majority of the job losses in both were construction related. 'In particular in the Midlands region housebuilding in recent years was boosted significantly by tax incentives. The ending of such schemes has led to a disproportionate contraction in building in this area, with the extent of job losses reflecting this,' he added.