Extra 80,000 jobs but slowdown likely

Some 76,800 extra jobs were created in the year to February, the latest quarterly national household survey (QNHS) shows.

Some 76,800 extra jobs were created in the year to February, the latest quarterly national household survey (QNHS) shows.

However, the survey also shows that three sectors - construction, education and health - accounted for two-thirds of this growth and that the rate of employment growth is likely to have peaked early this year.

Meanwhile a separate survey suggests a sharp slowdown in employment growth is occurring among larger firms in the construction sector.

Some 2,074,900 people were employed as of last February, 3.8 per cent higher than in February 2006.

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This compares with 4.3 per cent growth last November, significantly higher than the EU average for the period, 2.1 per cent.

Unemployment ticked up from 4.1 per cent in November to 4.2 per cent in February.

According to a breakdown of the figures, some 45,000 new jobs - three in every five - went to non-nationals. The number of non-nationals working in the economy is now 229,400 or 11 per cent of total employment, compared to just 184,200, 9 per cent of total employment, in February 2007.

In the hotels and restaurant sector non-national employment grew by 9,000 while employment of nationals fell, by 2,000.

When measured by sector, construction continues to grow most strongly with employment reaching 282,000, 11.2 per cent up on a year before.

Of the total increase in male employment during the period, 38,100 in total, 27,800 or 73 per cent found jobs in the construction sector. This sector now accounts for more than one in five of the male workforce and just under 14 per cent of the whole labour force.

Peter Stafford of the Construction Industry Federation said yesterday: "The continued growth in employment demonstrates clearly the capacity of the construction industry to meet the needs of the economy."

Employment also remained strong in the public sector. Employment numbers in the public sector were 9,200 up on the 12-month period while the number of employees in the health sector rose by 15,800.

Dermot O'Leary of Goodbody stockbrokers yesterday said the public sector could not drive employment growth indefinitely.

"While future employment growth in these sectors will be a function of the government which gets into power after the general election, it is unlikely that jobs will continue to be added at the current pace in the years ahead," Mr O'Leary said.

While most sectors continue to show employment growth, one analysts said the latest results failed to reflect more recent trends in the economy.

Ulster Bank chief economist Pat McArdle said: "It loosely represents the situation in mid-January. This is four months ago and predates both the high-profile manufacturing job announcements and the change in sentiment regarding housing.

"I expect the next QNHS survey will show a much greater deceleration in both manufacturing and construction."

The Central Statistics Office (CSO), which produced the national household survey, also published its index of construction employment yesterday.

CSO figures showed that firms employing five or more people expanded employment by just 0.8 per cent in February year on year, and employment actually fell by 0.4 per cent in annual terms in March.

Compared to 2.4 per cent growth which was recorded during 2006, this suggests a significant slowdown in employment trends among larger construction firms.