Irish unemployment at a 12-year high

Ireland’s unemployment figures do not make comfortable reading for policymakers, as the amount of people claiming benefit has risen by the highest in almost 12 years, as the recession is expected to hit deeper and longer in 2009.

Due to the global financial crisis, the prosperous property market has crashed and Ireland was the first of the euro zone nations to succumb to recession.

The seasonally adjusted figure of benefit claimants has increased to 277,200 last month and represents the highest figure since 2006 and is currently increasing well above analysts predictions as the uncertainty of the future sets in.

Due to the volatility of the markets, many workers also feel insecure in their jobs as it seems that cut backs and staff redundancies are permanently hitting the headlines.

With the number of people claiming benefits up by 66 percent from last year, it is predicted that by the year end, jobless claimants will rise to 285,000, according to a Reuters poll.

Construction has been the hardest hit as demand for new build houses and commercial premises has dried up, however manufacturing, retail, transport, and financial have all been affected by the downturn.

Alan McQuaid, an economist with Bloxham Stockbrokers, has indicated that the life figures offer a clear indication that there is going to be little improvement in the short term as it is the third consecutive month that the number of redundancies has doubled the figure achieved in 2006.

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