The number of people in employment increased in the second quarter of this year by 4,400, to 1.749 million, according to the latest Quarterly National Household Survey from the Central Statistics Office (CSO).

The small increase represents a turnaround, coming as it does after two consecutive quarters where the numbers employed dipped.

During the 12 months to the end of May, the number of people in employment increased by 33,500. Most of the increase was due to new positions in the public sector. There was a sharp decline in industrial employment during the year, with numbers dropping by 14,200.

The number of people unemployed fell by 2,800 during the second quarter, to 77,200. The number unemployed represents an increase of 11,800 over the year. Almost all of the annual increase was accounted for by short-term unemployment, which increased by 10,900 to 55,400. The unemployment rate for the second quarter was 4.2 per cent, down 0.2 per cent on the previous quarter.

Employment growth was greater in percentage terms in the Border, Midland and Western region (3.2 per cent) than in the Southern and Eastern regions (1.5 per cent). Unemployment was lowest in the Mid-East region, at 3.3 per cent, and highest in the Border region, at 6.8 per cent.

One out of every two workers in the State has no private pension cover (as against State pension cover), the first ever survey by the CSO has established. The benchmark survey found the pension coverage rate for all persons in employment aged between 20 years and 69 years was 50.7 per cent. The survey was conducted during the first quarter of 2002.

It found that 35.2 per cent had an occupational pension only; 12.6 per cent had a personal pension only; and 2.9 per cent had both.

Males, at 55.4 per cent, had a higher coverage rate than females, 44.2 per cent of whom had coverage. The regional breakdown for coverage showed Dublin (55.8 per cent) and the Mid-East (55.7 per cent) having the highest rates, and the West (41.5 per cent) and the Midlands (43.8 per cent) having the lowest rates.

The higher proportion of agricultural workers in the latter regions was a factor in the variation. Agricultural workers were found to have a coverage rate significantly below the average at just 12.5 per cent. The catering sector also fared badly at 15.8 per cent coverage.

The Pensions Board, which aims to raise pension coverage to 70 per cent, said it believes the introduction of personal retirement savings accounts (PRSAs) early next year and the requirement that all employers must provide pension access for all employees will considerably increase pension coverage.

The chairman of the Irish Association of Pension Funds, Mr John Feely, said the CSO results were not surprising. "As a result of the huge growth in employment, pension scheme membership has lagged. This really underlines the need for PRSAs as a vehicle to encourage growth, especially for the self-employed and those in smaller companies."