The number of people signing on the Live Register fell by 9.9 per cent in December compared to the same month a year earlier, according to new figures from the Central Statistics Office (CSO).
The standardised unemployment rate meanwhile fell from 10.7 per cent in November to 10.6 per cent at the end of last month.
On a seasonally adjusted basis there was a monthly decrease of 3,300 or 0.9 per cent in the numbers on the Live Register in December, reducing the total to 363,900.
In unadjusted terms there were 356,112 people signing on the register last month. This represents an annual decrease of 39,299 or 9.9 per cent.
The total number of people on the Live Register is now 18.9 per cent below the August 2011 peak of 448,800.
According to the latest figures, the number of long term claimants on the Live Register fell by 8.3 per cent in the year to December. The number of male long terms claimants was down by 12.1 per cent during the period under review but female claimants rose 0.3 per cent giving a total of 164,796 long term claimants.
Annual decreases in persons aged under 25 on the Live Register have occurred in all months since July 2010. In December, the number of persons aged under 25 on the register fell by 11,220 or 19 per cent.
In December, 53.7 per cent of all claimants on the Live Register were short term claimants. This compares to 54.6 per cent for the same month a year earlier.
There were 72,362 casual and part-time workers on the Live Register last month, which represents 20.3 per cent of the total. This compares with 20.6 per cent one year earlier when there were 81,382 casual and part-time workers on the register.
There were 23,969 new registrants on the Live Register last month, consisting of 10,145 Jobseeker’s Benefit claims, 12,569 Jobseeker’s Allowance claims and 1,255 ‘Other Registrants’.
Alan McQuaid, an economist with Merrion Capital, said the latest figures show the labour market is firmly on the road to recovery.
“The unemployment rate remains the key indicator as far as the economy is concerned and steady progress is being made in terms of bringing it down. Taoiseach Enda Kenny has targeted getting it down below 10 per cent this year and if the positive momentum seen in 2014 is maintained then that goal should be realised. Assuming the economy continues to grow strongly in 2015, an average jobless rate of close to 10 per ent is envisaged for this year, with the figure likely to be running around 9.5 per cent come December.”
Investec economist Philip O’Sullivan said the problem of long-term unemployment remains a serious issue.
“Helped by the rising numbers of people at work, the unemployment rate continues to push steadily lower. While this progress is indeed very welcome, it is clear that there are still many people who have yet to experience the benefits of the economic recovery that is underway in Ireland,” said Mr O’Sullivan.
David McNamara from Davy noted that hard-hit sectors like construction and retail are also now bouncing back, augmenting strong employment gains in the multinational sector.
“Former craft and related workers remain the largest occupational group on the Live Register, comprising 19.9 per cent of the total. However, this group has fallen by 12,977 or 15.5 per cent on the year. Similarly, the plant and machine operatives group was down 6,988 or 10.7 per cent, also related to the construction sector. The sales occupation group was down 4,613 or 11 per cent, helped by the recovery in the retail sector,” he said.
Lobby group ISME welcomed the drop in unemployment figures and reiterated that SMEs could potentially deliver 60,000 extra jobs this year if the Government were to create a supportive and stable business environment.
The association called for cuts to employer’s PRSI rates and for concrete actions to be taken to address the social welfare trap, which it said was hampering job creation.
