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Unemployment rises sharply to 5.2% in Q3

The number of people unemployed rose to 98,000 in the third quarter, an increase of 12,200 on the year and a seasonal increase of 17,500 in the quarter, according to figures fron the Central Statistics Office's Quarterly Household Survey.

As a result the unadjusted unemployment rate increased to 5.2% compared with 4.6% in the third quarter of 2002.

The survey is considered to be the most reliable measure of unemployment available, but it is published with a lag, so it takes no account of the reported reduction in the numbers signing on the dole over the past four months.

The survey shows the jobless situation at its weakest for four years with an additional 17,500 people classed as unemployed over the summer months.

The long-term unemployment rate remained at 1.4% in the quarter compared with the 1.2% recorded in the third quarter of 2002.

Employment growth continued in the third quarter of 2003 showing an increase of 26,000 in the year to 1,820,800. This compares with an annual increase of just over 28,000 in the previous quarter.

Part-time employment accounted for almost two thirds, or 16,300, of the annual employment increase, continuing the marked trend towards part-time working observed in the second quarter when it accounted for almost 44% of the overall growth.

Young people account for most of the seasonal rise in unemployment. The number of unemployed persons under 25 years of age accounted for almost 15,000 of the quarterly increase of 17,500 in the number recorded as unemployed in the third quarter.

In the year to the third quarter of 2003, employment grew in all sectors with the exception of 'other production industries' which was down 9,600; agriculture, forestry and fishing dropped 4,700; and transport, storage and communication fell by 3,100. The biggest growth areas were in health, up 14,000; construction, up 7,000 and hotels and restaurants up 7,700.

The number of peope who described their usual situation as 'at work' increased by 25,600 in the year to 1,723,800. The number of persons describing their usual situation as 'unemployed' decreased by 3,400 to 122,000 in the year.

There were 355,300 students in the third quarter of 2003, an increase of 2,300 on the corresponding quarter in 2002. In the third quarter nearly a quarter of all students had a job.

The number of persons describing themselves as on 'home duties' increased by 4,800 in the year to 556,600 with over 40% of the increase attributable to males.

IIB economist Austin Hughes believes today's figures probably mark the low-point for the Irish jobs market. He points to a stregthening of the global economic upturn in recent months, an improvement in the Irish economy signalled by recent tax data, the fall in numbers on the Live Register, and the steady rise in consumer sentiment.

But small business group ISME called for urgent action to help the indigenous manufacturing sector. It pointed to a significant fall in industrial employment, with 17,400 plant & machinery operatives gone and 9,600 jobs lost overall in the 'other production industries' category.