Jobless rate falls to 4.4% in good sign of upswing

Further evidence of an economic upturn came yesterday with the publication of the lowest Live Register figures since December…

Further evidence of an economic upturn came yesterday with the publication of the lowest Live Register figures since December 2002.

The number of people signing on last month decreased by 4,220 to 164,660, the Central Statistics Office said.

The seasonally adjusted total fell from 170,400 in March to 166,200, resulting in a standardised unemployment rate in April of 4.4 per cent.

Friends First chief economist Mr Jim Power said the data suggested the improvement in the labour market was gathering momentum. This reduced the possibility of a sharp setback for the housing market.

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"A labour market shock would represent the biggest potential threat to the stability of the Irish housing market, but the April labour market data suggest that this threat is now steadily evaporating," he said.

The figures were also welcomed by the Irish National Organisation of the Unemployed, which noted that the decreases were geographically spread across the country.

But its general secretary, Mr Eric Conroy, said it should be borne in mind that the Live Register was not a true measurement of unemployment.

Not everyone leaving the register was returning to employment as some were simply switching to another type of social welfare payment, he pointed out.

There was a big disparity between the figures and those recorded using the principal economic status (PES) method, he said.

"The PES is when people state their own economic status. These figures record a much higher level of unemployment and even identify unemployment blackspots, particularly in some rural areas."

Nevertheless, the figures published yesterday contained little but good news. They recorded a Live Register decrease in all regions in April, and in all but two counties, Kildare and Westmeath. The largest percentage decreases were recorded in Kerry, where the numbers signing on fell by 7.1 per cent, and Limerick, where there was a 4.3 per cent drop.

The monthly decrease of 4,220 comprised 2,603 males and 1,617 females. People aged 25 and over accounted for 3,200 of the drop.

The Live Register does not measure unemployment, according to the CSO, as it includes part-time, seasonal and casual workers entitled to receive unemployment assistance or benefit.

Unemployment is measured by the Quarterly National Household Survey. The latest seasonally adjusted figure, for September to November 2003, is 88,000 persons unemployed.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times