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Unemployment rate in capital jumps as labour force expands

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The numbers in work in Dublin in the first six months of the year increased by about 7,000

The numbers in work in Dublin in the first six months of the year increased by about 7,000

The numbers in work in Dublin in the first six months of the year increased by about 7,000

The unemployment rate in Dublin jumped by over one percentage point in the three months to the end of June, even though the numbers in employment are rising.

The labour force in the capital is growing at a faster pace than jobs are being created, a gauge of the city's economy has found. The jobless rate in the second quarter for the capital was 8.1pc - up from 6.9pc between January and March, according to Central Statistics Office.

The numbers in work in Dublin in the first six months of the year, however, increased by about 7,000.

But the labour force - the number of people willing and able to work - rose by around 11,000 over the same period.

"These results - which have followed sustained downward movements in the unemployment rate over the previous five years - suggest that the rate of job creation in Dublin did not match the expansion in the labour force over the second quarter of the year," according to the Dublin Economic Monitor.

"This unexpected rise in the unemployment rate was the largest single increase since the final quarter of 2010 and was mirrored in a softening of Dublin's consumer sentiment for the third quarter of 2016."

The monitor is a joint initiative on behalf of the four Dublin local authorities, co-ordinated by the City Council. It is produced by DKM Economic Consultants.

CSO data for the second quarter, published in August, shows that the number of people in employment in Dublin rose from 611,700 in the first quarter, to 617,500 by the end of June.

But the numbers in the labour force increased to 671,700, from 657,200 over the same period.

The number of unemployed in the capital rose to 54,200 from 45,500 in the first quarter, where it had dropped from around 50,000 at the end of last year.

The monitor said economic indicators for the Dublin economy remain generally positive, though it warned that the international uncertainty generated by Brexit, combined with "domestic factors", has acted as a drag on the capital's performance.

It added that the statistics suggested "economic performance is broadly stable".

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