IBEC - Newsroom

IBEC, the group that represents Irish business, today said that new CSO labour market data highlight the scale of the challenge facing the new Cabinet.

Commenting on the CSO's Quarterly National Household Survey, IBEC senior economist Fergal O'Brien said: "The significant increase in long-term unemployment is one of the biggest challenges facing the Government. The new cabinet must put jobs and economic renewal at the very top of its agenda. It is vital that every government department plays its part in getting people back to work and restoring our economic fortunes.

"The continued rise in the long-term unemployment rate and the fall in those classified as short-term unemployed suggests an emerging structural unemployment problem. Those previously employed in construction or traditional manufacturing are struggling to obtain new jobs in other sectors of the economy.

"The unemployment rate increased to 13.1% in the final quarter of the year, which is higher than indicated by the Live Register for the same period. Almost 170,000 jobs were lost in the last year: 70,000 of these in the first quarter of 2009, with the pace slowing considerably since then.

"Construction remains the sector under the most pressure, with no sign of a bottoming out yet. Construction employment numbers fell by 80,000 in the year and 15,000 of these were lost in the final quarter of 2009. Over 10% of total job losses were in manufacturing. Somewhat surprisingly, the hospitality sector held up well during 2009, while the information and communication and health sectors also saw a modest increase in employment levels."