Sunday 22 October 2017

Unemployment rate on track to fall below 6pc as downward trend continues

The youth unemployment rate rose slightly in June 2017 (Stock image)
The youth unemployment rate rose slightly in June 2017 (Stock image)
Louise Kelly

Louise Kelly

The unemployment rate for last month continued a downward trend with a figure of 6.3pc recorded, down from 6.4pc in May 2017.

Over a twelve month period, the rate dropped from 8.3pc which was recorded in June 2016, according to the latest Central Statistics Office (CSO) report.

In June 2017, the number of people unemployed was 139,400, down from 140,300 when compared to the previous month - and a decrease of 42,100 when compared with the same period in 2016.

At a glance

In June 2017, the unemployment rate was 7.1pc for men, unchanged from May 2017 and down from 9.4pc in June 2016.

The unemployment rate for women in June 2017 was 5.4pc, down from 5.5pc in May 2017 and down from 6.9pc in June 2016.

The youth employment rate (those aged 15-24 years) was 11.9pc in June 2017, an increase from 11.8pc in May 2017.

Rate on track to fall below 6pc

Source: CSO Ireland
Source: CSO Ireland

EMEA economist at Indeed, Mariano Mamertino, said that unemployment is on track to fall below 6pc.

"Ireland remains on a clear trajectory for unemployment to fall below 6pc in the coming months, which bodes well in terms of the likelihood of increased consumer spending and retails sales as more people take home a weekly pay cheque," he said.

"Whilst the unemployment rate in Ireland remains higher than EU countries like Germany, the Netherlands or Austria, OECD data released last week shows that Ireland is doing a better job at integrating immigrants into the labour force. 

Last month, the OECD reported that the unemployment rate for foreign born people in Ireland stood at 7.7pc in Q4 2016, only one percentage point higher than for people born in Ireland, said Mr Mamertino.

"Ireland’s labour market has an above average ability to integrate immigrants successfully, and this is something that stands out as a testament to its dynamism," he said.

"Ireland’s openness to labour immigration remains a positive trend that will help employers to continue to access a larger pool of talent. As the economic recovery continues, such openness will be crucial for addressing key sectors in which there is an increasing shortage of specialist expertise.

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