Long-term unemployment increases for the first time in eight years

30 May 2002

The QNHS unemployment rate, at 4.4 per cent, is now at its highest rate since this time two years ago and unemployment has been steadily increasing since the start of 2001.
More worryingly the figures in the Central Statistics Office’s Quarterly National Household Survey show the first increase in the long-term unemployment rate since April 1994.

"While long term unemployment is no where near the 10 per cent rate experienced in 1988, this increase is a worrying development," said Eric Conroy, General Secretary of the Irish National Organisation of the Unemployed. "A person's chances of finding work reduce drastically when they become long term unemployed, they are likely to slip into consistent poverty and long term unemployment is a soul destroying experience."

Community Employment
Mr Conroy said that, because the INOU was primarily concerned with eradicating long-term unemployment, the organisation is extremely worried that the Department of Enterprise, Trade and Industry is cutting back on Community Employment - the country's primary labour market programme.

"Community Employment is being cut with no new alternative being offered to long-term unemployed people to help them make the way from welfare to work," said Mr Conroy. "This is a cut which the government made without consulting the social partners and which is in breach of the Programme for Prosperity in Fairness. The INOU is currently campaigning to have these additional cuts in CE reversed immediately."

Regional Differences
Unemployment grew most in the Border, West and South East regions, with the Border region suffering a 6 per cent unemployment rate. 'It is clear that the Border region is not experiencing a "peace dividend" in the aftermath of the Good Friday Agreement," said Mr Conroy. "Efforts to tackle unemployment must be targeted to benefit those regions and districts in greatest need.'

Gender differences
The unemployment figures show some notable differences between men and women, with males accounting for most of the latest rise. There are an extra 11,100 unemployed males and an extra 3,300 females. This gender difference is perhaps because of the closure of traditional industries, such as carpet making in Youghal and Ardagh Glass in Dublin.
The figures also show another important gender differences: Almost all unemployed males are looking for full time work, while a third of unemployed females are looking for part-time work - this is probably because of the cost of child care.

Medical Cards
The QNHS also reveals that a quarter of adults are covered by the Medical Card. However, many people on low incomes are no longer eligible for free medical treatment because the Medical Cards means test has not been updated.
For instance, the current income limit for a single person under 66 living alone is EUR132 - a person on the minimum wage working 23 hours or more a week would not normally be eligible for a Medical Card. Fear of losing the Medical Card and other secondary benefits is a major disincentive to unemployed people looking for work.