The number of people out of work crept up by 1,200 to 141,100 last month but remained significantly lower than at the same point last year.
The seasonally adjusted unemployment rate stood at 6.4 per cent, compared with 6.3 per cent in June, the Central Statistics Office revealed yesterday. The comparable rate in June last year, when 176,000 people were unemployed, was 8.1 per cent.
Paschal Donohoe, the finance minister, has warned that the country could run into difficulties in the coming months as the economy nears full capacity. If such a scenario did materialise it could lead to the economy overheating, he said.
The Economic and Social Research Institute and Irish Fiscal Advisory Council have warned the government that the economy could be harmed if there were more jobs available than people to fill them. Youth unemployment remained significantly higher than the headline rate at 12.3 per cent.
Neil McDonnell, chief executive of the Irish Small and Medium Enterprises Association, said that the figures underscored the importance of the government introducing pro-business measures in the budget to boost competitiveness.
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“Today’s results serve as a reminder to government that job creation is not a given. The increase in youth unemployment and the monthly increase in the unemployment figures are concerning,” Mr McDonnell said.
“Budget 2018 must be anti-cost, pro-employment, pro-business and pro-SME. Government must grasp the linkage between business costs and jobs. Excessive business costs hamper potential employment.”
In July 2017, the seasonally adjusted unemployment rate was 7.2 per cent for men, up from 7.1 per cent in June 2017 and down from 9.3 per cent in July 2016.
The seasonally adjusted unemployment rate for women in July 2017 was 5.4 per cent, unchanged from June 2017 and down from 6.6 per cent in July 2016.
There were 86,700 men out of work in the month and there were 54,500 women out of work.