Unemployment rose to 11.4 per cent in April with a record 388,600 people signing on for jobseekers' benefit, according to CSO figures published this morning.
The rate of growth in the numbers signing on has slowed somewhat, with a seasonally adjusted rise of 15,800, lower than the 20,000 joining the register in March, the data show,
The rise in the number of people claiming benefits in February was 26,700 with a record 36,500 increase in January. The unemployment figure in April is the highest since August 1996. The unadjusted total is 384,448, a rise of 13,177 in the month.
The number of people on the Live Register has almost doubled over the past year, rising by 96 per cent, as the Irish labour market has been hit hard by the collapse of the property and construction sectors, the global financial crisis and an unfavourable sterling-euro exchange rate.
A report by the ESRI published today forecasts that unemployment will reach almost 17 per cent next year as it suffers one of the sharpest falls in economic growth experienced by a developed country since the Great Depression.
Rossa White, chief economist at Davy, said January looked as if it would be the peak month on the numbers joining the Live Register.
"In April, claimants increased by only 15,800 or 4.2 per cent. Both in absolute and per cent terms, this was the smallest monthly rise since September of last year," he said.
The small and medium sized enterprises representative body Isme said the Government had to make job protection and creation its number one priority following the atrocious’ live register data.
Ulster Bank economist Lynsey Clemenger said there were some positives in the data, particularly the fact that the 15,800 increase was well below the average of almost 27,000 for the first quarter.
She said if the current rate of increase the Live Register would grow to 515,000 by the end of the year, with an unemployment rate of 14 per cent.
ISME chief executive Mark Fielding said: “The Government needs to face the reality that our labour market is in a mess. The recent Budget and Government inaction has indicated an unwillingness to address the ongoing problem, which continues to deteriorate.”
Willie Penrose, Labour spokesperson on enterprise, trade and employment, said the cost of the rise in the numbers signing on for unemployment assistance had cost the Exchequer €3.8 billion.
“Labour believes that it makes more sense to put money into saving jobs, creating jobs and providing training and educational opportunities rather than paying people to go on the dole. We have consistently argued for strategic stimulus measures that will simultaneously deliver much-needed infrastructure, and create jobs,” deputy Penrose said.
Fine Gael Enterprise Spokesman Leo Varadkar said Ireland now had the second highest unemployment in the Eurozone and accused the Government of doing “almost nothing to support business, even though this is the most effective way to sustain jobs”.
He called for the introduction of a State-backed loan guarantee scheme for SMEs, a reduction in the VAT rate and the removal of the travel tax.
Mr Varadkar also called for a PRSI exemption for companies hiring new employees and a freeze on local authority rates and charges for firms.
Live Register data is not designed to measure unemployment as it includes some part-time and casual workers.
The Central Statistics Office (CSO) estimates that almost 62,000 people out of 388,600 total number of claimants are casual and part-time workers who are entitled to the jobseekers’ benefit or allowance payments.
It costs the Exchequer an estimated €20,000 for every person joining the register due to loss tax revenues and welfare payments.
