Worrying Trends in Unemployment

The latest Quarterly National Household Survey (QNHS) indicates that unemployment in Ireland is continuing to grow.  In Q4 of 2010 a seasonally adjusted total of 16,200 people lost their employment.  While this is slower than the rate of job losses the previous quarter (which were 26,800) it is still a sign of the declining economic situation prevalent in Ireland.

Worryingly, it is not only increasing unemployment which is a problem but the fact that the nature of unemployment is changing.  Increasingly the number of people unemployed is comprised of those which can be classified as being long term unemployed.  Figure 1 shows that since the height of the economy’s growth in 2007 the proportion of the number of people who are classified as long termed unemployed has increased.  Long term unemployment is classified as people who are unemployed for a period longer than a year.  These individuals are most likely in sectors where there has been a dramatic decline in employment which may be structural in nature. 

Further to this, there is an increasing trend in long term unemployment among the younger members of the Irish population.  Figure 2 displays this trend.  It can be noted that, of the individuals who are aged between 15 and 24 and unemployed, almost a third of these have been unemployed for over a year.  This is a worrying trend and something will only continue to worsen based on the current economic situation.