Long-term unemployment jumps by 138%

24 Mar 2010

The extent of the challenge facing the Government in addressing the unemployment crisis is clearly illustrated in the latest Quarterly National Household Survey released today by the Central Statistics Office (CSO). This report covers the last quarter in 2009, the months from October to December. Employment dropped by a further 8.1% to 1,887,700 people. Seasonally adjusted unemployment grew to 13.1% or 281,700 people. However the extent of the challenge facing the Government is the 138% increase in long-term unemployment. What is so striking is that more than half of the increase in unemployment came from the jump in long-term unemployment. There are now 89,100 people long-term unemployed giving a rate of 4.1%, a rate not seen since late 1997.

The INOU welcomes Taoiseach Brian Cowen's comments that 'the jobs agenda' was a 'major focus' to the changes he made in yesterday's Cabinet re-scuffle, though the organisation thought it odd that the word 'employment' was dropped from a departmental title.

"Upskilling people for the jobs of tomorrow is vital," said Bríd O'Brien, Head of Policy with the INOU, "otherwise there is a real danger that long-term unemployment will continue to grow and become intractable". However, the organisation is concerned that addressing this issue without proper investment in Ireland's future will not produce the sought for results i.e. job creation that is accessible to unemployed people and other job seekers.

It is critically important that when employment and other services engage with unemployed people that they are informative and support people to make the right options. At a time of continuing job losses services must be able to support people to plan for their future. There is nothing more frustrating for people to be sent on courses that will offer them little by way of a job or further training / education options. This requires an overall vision for the Irish economy and labour market and where it is going. The publication last Friday by the Department of Enterprise, Trade and Employment of their report 'Jobs and Growth 2010' is to be welcomed.

"However, given the scale of the job losses, it would be foolish to think that re-aligning Government Departments alone will address the unemployment crisis. There is an urgent need for intensive investment in re-education and re-training on a massive scale if unemployed people are to enjoy the jobs growth envisaged in the range of recent reports published by Government and their agencies," Bríd concluded.