Unemployed Organisation welcomes increase in work force but highlights worrying trends in QNHS

13 Sep 2006

The Irish National Organisation of the Unemployed welcomes the good news in the Quarterly National Household Survey (QNHS) for Qtr. 2 of 2006 but is concerned at worrying unemployment aspects contained in the figures. The headline increase in employment to over 2 million is very welcome. This is nearly double the figure in the late 1980’s when unemployment was at its highest. The INOU recognises the tremendous strides that have taken place in the Irish economic performance since the INOU was set up in 1987, at the height of the unemployment crisis.

However, the news in the QNHS is not so good in other areas. Long-term unemployment (LTU) has increased by 3,400 to 29,600 (since Qtr. 1) and is at its highest level in two years, and the second-highest level in six years. The government National Anti-Poverty Strategy (NAPS) target to eliminate LTU by 2007 is not likely to be achieved. As the INOU has repeatedly said in the past, we cannot consider ourselves to have a full employment society if we still have the misery of nearly 30,000 people being unemployed for over 12 months.

The INOU has always considered the headline (ILO) rate of unemployment to be a very tight definition. All other unemployment numbers are always higher. In the QNHS, the unemployed figure under Personal Economic Status (PES) – where respondents state whether they feel they are unemployed - has increased by 5,700 in 12 months to 115,400. This is over a quarter higher than the official number. The ILO’S widest definition that includes unemployed people including those who don’t fit the narrow ILO headline figure, has increased to 7.5% or 156,000 people.
Youth unemployment continues at almost double the national unemployment average. The level of long-term unemployment among those under 25 has increased by 10% to 6,600 in the year to Qtr. 2. If we truly want to eliminate unemployment in the long term, we must ensure that all children receive an education, at least up to 18 years of age. There is a stark correlation in Ireland between lack of education and the risk of being unemployed. Therefore we must do all in our power to eliminate early school leaving.
There are also worrying signs in relation to employment. The level of construction employment is unsustainable at present levels. The figure increased over 20,000 in the year to 264,300. This represents a staggering 13% of the total in employment. The EU average is one-in-twelve (8%). Any correction on this must lead to substantial unemployment. On the other hand, employment in Other Production Industries has decreased by 5,700 in the same period. This has continued a job haemorrhage in the manufacturing sector in recent times. The INOU has continuously warned of the threats to our industrial base and the need to act to save jobs in this vital part of the economy. We are pleased that this issue will be addressed in Towards 2016 by the government, trade unions and employers working together to resolve the challenges facing manufacturing in Ireland.

The INOU is also concerned at the level of unemployment in Dublin – the rate now stands at 4.8%, which is the highest for several years. It is worrying that the powerhouse of the economy in recent times may be a pointer to a downturn in the Irish economy generally.

“All in all, we must not be complacent about unemployment in Ireland in 2006”, said Mr. Eric Conroy, General Secretary. “There are many worrying signs that unemployment has not been resolved, and that in fact it could be aggravated in the near future. The INOU has signed up to Towards 2016, and is keen to work with the government and the other social partners to ensure that unemployment is kept under control, and that we achieve a full employment society”, he added.