Employment:The number of jobs in the economy continues to surge, driven by the construction, financial services and health sectors, according to the Central Statistics Office (CSO) Quarterly National Household Survey.
However, the numbers employed in manufacturing continue to decline.
The total labour force rose by 94,500 in the year to May to surpass the two million mark for the first time. Over the same period an extra 93,000 jobs were created.
Although the number of unemployed rose by 1,500, the unemployment rate fell to 4.2 per cent compared to 4.4 per cent in May 2004
An extra 36,400 jobs were created in the construction sector in the year to May, accounting for over one-third of total employment growth. A further 20,000 jobs were created in the financial services sector. Employment in the health sector accounted for 11,000 new jobs over the same period.
The numbers employed in the category "Other Production Industries" - mainly manufacturing - has fallen by 6,400 since last May. Agriculture, forestry and fishing employment picked up between March and May, but remained lower than in May 2004.
When broken down on a regional basis, unemployment rate was highest in the south-east and Border areas, at 5.6 and 4.9 per cent respectively, and lowest in the mid-east, at 2.7 per cent.
Business group Ibec has reacted cautiously to the latest data. "The continuing decline in manufacturing employment illustrates the competitiveness challenges facing Irish industry as a result of rising pay costs, which are well ahead of those in our main trading partners, and crippling increases in non-pay costs such as energy and waste management", said Ibec senior economist Fergal O'Brien.
But survey evidence released yesterday by the Economic and Social Research Institute suggests that the jobs outlook remains bright for the remainder of the year.
According to the survey, 19 per cent of firms across all sectors reported increasing vacancies in July, with construction and service sector firms dominating this trend.
Employers in the industrial sector expected employment to remain broadly the same in coming months. Firms were encountering particular difficulties in recruiting construction workers, sales representatives, retail managers and receptionists and bar staff, according to the survey.