Unemployment falls as PUP is due to be withdrawn in February

The Covid-19 adjusted unemployment rate hit a peak of 31.5 per cent last year.
Unemployment falls as PUP is due to be withdrawn in February

Reuters

The State's unemployment rate, including people receiving temporary Covid-19 benefits, fell to 7.9 per cent in October from a revised 8.9 per cent in September.

The Covid-19 adjusted unemployment rate hit a peak of 31.5 per cent last year.

As reported in The Irish Times, excluding PUP recipients, the rate of unemployment was unchanged at 5.2 per cent after the previous month's figures were also revised.

“As the level of PUP supports are eased on a phased basis, the strength of demand for labour bodes well for those looking to return to work,” Jack Kennedy, economist with recruitment site Indeed, said.

The tightening of the labour market in recent months has also been accompanied by upward wage pressure.

“Workers facing rising energy prices and other cost inflation, may look to use the demand for their services to push for further wage increases,” Mr Kennedy said.

Recently published Central Bank/Indeed research has found that, in sectors such as construction and software development, labour supply is not keeping pace with demand which is putting upward pressure on wages, he added.

The Department of Finance forecast in September that unemployment would average 7.2 per cent next year and fall to 6 per cent in 2023 as the economy continues to recover from the pandemic.

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