Unemployment Reaches Highest Figure since 1998

4 Dec 2006

Youth Unemployment ‘Particularly disturbing’
The Irish National Organisation of the Unemployed (INOU) is alarmed at the upward surge in unemployment in the Quarterly National Household Survey (QNHS) for Qtr. 3 of 2006. The 104,800 people who are unemployed (using the tightest International Labour Organisation (ILO) definition) constitute the highest figure since 1998 and the unadjusted rate of 4.8% is the highest in the last three years.

The INOU is particularly worried by the very significant leap in the youth unemployment levels. In addition, the less stringent QNHS figure of people who are jobless is up to 8.4%, the highest since 2003.
While the INOU welcomes the increases in the numbers of people employed, we have continually warned about the dangers in the labour market, including the consistently high levels of redundancy (especially in manufacturing), over reliance on the construction industry and competitive pressures arising from globalisation. We are concerned, that after a period of remarkable employment growth and reductions in unemployment, that Ireland could be facing a period of increasing unemployment.

The figures on youth unemployment are particularly disturbing. The unemployment rate for the 15-24 age band has shot up to 10.5% from levels of 7%-8% in previous quarters. This is well in excess of twice the national average. The numbers of young unemployed people, at 41,300 is the highest since records began – this is an increase of 13% on the previous year and a nearly 50% rise on the previous quarter. The level of long-term unemployment among those under 25 has increased by 22% to 6,700 in the year to Qtr. 3. To tackle youth 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. The INOU is calling for initiatives and programmes to be put in place to support young unemployed people to take-up work, training and education opportunities.

“The QNHS figures should shake our complacency about the state of unemployment in Ireland today”, said Mr. Eric Conroy, General Secretary. “The INOU as a Social Partner will be calling on the Government to tackle increasing unemployment and joblessness in Irish society, particularly youth unemployment”, he added.