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Winter may cause the Irish economy to go back into hibernation

Written by Robert McHugh, on 9th Sep 2020. Posted in Economy

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The Covid-19 adjusted unemployment rate fell to 15.4% in August from 17.6% in July, according to the latest figures from the Central Statistics Office (CSO). 

These figures are an estimate based on the Live Register and Covid-19 related claims. The main unemployment rate rose to 5.2% in August on a seasonally-adjusted basis, up from 5.1% in July, and 4.9% twelve months ago. 

Today's numbers indicate a further positive downward trend in the Covid-19 adjusted unemployment rate, which stood at 15.4%. The main unemployment rate rose slightly to 5.2%. Global job site, Indeed say this general decrease can be attributed to the continued reopening of businesses as those on PUP are able to return to work. 

There is hope, however, as Indeed data shows a slow but steady recovery in job postings. As schools reopen, postings in sectors such as childcare are actually slightly higher than this time last year. This indicates that jobs are becoming available in certain sectors, but further efforts are needed to match the skillset of the workforce to fit them. 

Commenting on the figures, economist at Indeed, Jack Kennedy said, "While these figures offer some welcome news, the country will be holding its breath over the coming winter to see the more permanent impact on the headline unemployment rate. Even with pubs due to reopen, it’s possible that some of those counted in the temporary Covid adjusted figure will transfer into the standard unemployment category as confirmation of job losses occur. With positive cases rising, and the threat of another lockdown looming, it will be a testing time for those trying to keep businesses open and staff employed."

He added, "The next few months will also be challenging for graduates, who are facing an entirely different job market than those who qualified just a year earlier, when the economy was nearly at full employment. As is a common theme in recessions, young people tend to be among the worst affected - youth unemployment still remains exceptionally high at 37.8% on the Covid-19 adjusted measure."

Source: www.businessworld.ie

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