skip to main content

Employment rise bright spot in CSO figures

Jobless rate stuck at 14.6% as number of self-employed people falls sharply
Jobless rate stuck at 14.6% as number of self-employed people falls sharply

Official figures show a slight rise in the number of people at work in the final three months of last year, the first such increase for four years.

The figures, from the Central Statistics Office's quarterly national household survey, show, however, that the unemployment rate in the final quarter of last year was 14.6%, unchanged from the previous quarter.

The number of people at work in the economy fell by 15,400 or 0.8% over the year to stand at just over 1.8 million in the final quarter of last year. The CSO said the average employment level during 2011 was 38,100 lower than in 2010, following an 80,700 drop in 2010.

But, when adjusted for seasonal factors, employment in the fourth quarter was up 10,000 from the previous three months, the first such quarterly increase since the last quarter of 2007.

The CSO figures show that 302,000 people were unemployed at the end of last year, up 3,000 compared with a year earlier. Women accounted for all of the increase, though men still make up two-thirds of the total number of unemployed people.

The long-term unemployment rate rose from 7.3% to 8.6% over the year, and people out of work for more than a year now account for more than 60% of the total.

The average unemployment figure for the whole of 2011 was 304,200, up 12,500 or 4.3% compared with 2010.

A breakdown showed that a big drop in the number of self-employed people accounted for more than 70% of the total fall in employment over the year. The CSO says the number of self-employed people, at 285,800, is at its lowest level since 1998.

The total number of people in the labour force in the fourth quarter was just over 2,109,800, down 12,400 or 0.6% over the year.

The number of women in work fell by 9,400 over the 12 months to the final quarter of 2011. The number of men at work dropped by 6,100.

Employment fell in eight of the 14 economic sectors over the year, with the biggest fall of 9,100 in the education sector. The biggest increase was in the information and communications sector, where employment was up 5,800.

"Major positive" for economy, says NCB

NCB economist Brian Devine said that, while one quarter does not make a trend, news of the quarterly employment rise was "a major positive" for the Irish economy. He said he had not expected consistent employment growth until the end of 2012 or the start of 2013.

"If the employment creation can be maintained in Q1 2012 and the euro area does not melt down the government's forecast of 2012 GDP growth of 1.3% may be achievable," he added.

Bloxham economist Alan McQuaid said the figures suggested that the labour market was stabilising to some degree, but they also provided further evidence of the huge task facing the Government in reducing the unemployment rate. Goodbody economist Dermot O'Leary called the fourth quarter rise a "positive surprise".

Ulster Bank economist Simon Barry called the figures "encouraging", saying an improved performance in the food sector appeared to be resulting in gains in some related manufacturing jobs.

Davy's David McNamara said 2011 was another poor year for jobs, though the fourth quarter figures represented a "welcome stabilisation".

But small business group ISME said a dramatic increase in emigration was leading to a "false" reduction in jobless figures. Chief executive Mark Fielding rejected any suggestion that the figures showed signs of stabilisation.