Unemployment rose sharply in April, according to new figures, with the sixth successive monthly increase in the live register now pointing to a sustained upward trend.
The seasonally adjusted total rose by 3,600 to 173,100 and job losses announced in recent days look set to keep the total moving upwards over the coming months.
The figures, showing unemployment at its highest level since the end of 1999, led to strong Opposition attacks on the Government ahead of next week's Cabinet meeting on competitiveness, with the Labour Party now claiming that unemployment is heading towards 200,000. Economic analysts now agree that the total will rise and some believe that the 200,000 barrier could be breached before the end of the year.
The number of people on the live register last month was 14,700 above the same month last year - a rise of 9.4 per cent - according to the Central Statistics Office. This is a big jump from the 5,800 annual increase in March. One reason why the annual gap increased so sharply was that unemployment fell by 5,300 in April of last year, thus affecting the annual comparison.
The unemployment rate is now 4.6 per cent, compared with 4.2 per cent in April last year. The rate has now climbed by one percentage point from its lowest level of 3.6 per cent, reached in early 2001.
Last month's rise may have been exaggerated by Easter falling during the month, leading to some educational staff signing on for a period. The unemployment rise in April was due entirely to a 3,012 rise in females on the live register, with male numbers dropping by 131. This continues the trend over the past year; since last April male unemployment has risen by 5,500, or 5.8 per cent, while female unemployment has jumped by 9,200, or 14.5 per cent.
Unemployment is rising in most regions, with the biggest increases last month in the Mid-East region and in Dublin.
Economists said the figures indicated a weak jobs market and most expect substantial further rises in the live register in the months ahead. The unemployment rate could rise to around 5.7 per cent over the next year, warned Mr Jim Power, economist with Friends First, with the cost of job losses likely to outweigh new jobs coming on stream from fresh investment projects.
Davy Stockbrokers, meanwhile, believes the rate will approach 6 per cent by the end of the year, which would bring the total well over 200,000. Mr Austin Hughes of IIB believes it may move to 180,000-190,000, with the risk of a further increase if euro strength adds to competitive pressure on industry.
The Opposition parties renewed their attack on the Government on the basis of the figures. The increase "is a clear warning that we are heading once again for live register figures in excess of 200,000 unless the Government acts to halt the drift", said Mr Brendan Howlin, Labour spokesman.
A significant proportion of the job losses were directly attributable to Government policies, he said. Referring to an interview by the Tánaiste, Ms Harney, in yesterday's Business This Week, he said this confirmed that a number of projects under the National Development Plan had been long-fingered or delayed, meaning that jobs that would otherwise have been created through these projects were simply not available.
For Fine Gael, spokesman Mr Phil Hogan, said that the Government policy of imposing indirect taxes and charges on jobs was having a negative effect on the economy,
"This Government is seeking to correct the nation's finances by imposing taxes on employment," he said. "The consequences of the Government's tax and spend policies of the past three years are now impacting directly on businesses and workers," he said.
"Another special Cabinet meeting to reheat the promises of the past will not meet the new challenges in the economy."
