Irish unemployment rate is EU's lowest
Ireland has the lowest unemployment rate in the EU with a record number of jobs created in the last year, it emerged today.
There were 93,000 more people employed in August than in the same period last year, brining the labour force to more than two million people.
The Irish unemployment rate is the lowest in Europe at 4.2%, compared to 17% in Poland and 9.5% in Germany and France.
The FAS annual labour market review said the number of people in employment was now the highest since the foundation of the state.
“These good growth rates are being driven by strong construction demand and spending on services,” it said.
However, the review said that the weaknesses of the manufacturing sector was a worrying sign for the future.
Although the construction sector is now employing 250,000 people, the number of jobs in the manufacturing sector has fallen by 24,000 in the last four years.
The review said the increase in the size of the labour force was due to immigration and the increased participation of women over the age of 45. While the number of immigrants reached a record peak of 70,000 in the year up to April 2005, the number of emigrants fell to a new low of 16,600.
The greatest threats to the continued employment boom are high oil prices and global instability, as well as the threat of a worldwide flu pandemic.
“Overall in the absence of improvements in competitiveness, a moderation in employment growth seems likely in the medium term, with the possibility of rising unemployment,” the review stated.
In the USA, Germany and France, wage insurance schemes have been introduced to compensate workers who lose their jobs in traditional sectors such as manufacturing. The workers are given an earnings top-up if they take up a new job with a lower salary within a certain period of time.
The review recommended that the Government consider the introduction of a wage insurance scheme here.
It said slower employment growth should lead to reduced immigration as immigrants find it more difficult to find work here.
“However, this may only happen with a lag as information on the changed circumstances filters back to the main sending countries.”
The pay gap between men and women is 14%, which is below the EU average of 16%.
“Gender pay gaps in Ireland seem to be reducing but continued progress will be required to achieve a substantial reduction by 2010.”
Some of the gender pay gaps may relate to the different choices taken by men and women in relation to education and staying in the home and the fact that more women work in low paid jobs.
“However in most countries, there is also an unexplained gap which may be the result of discrimination,” the review stated.
