DUBLIN — Ireland's jobless rate fell to its lowest in nearly five years in February, dropping below 12 percent for the first time since April 2009 in a further sign the battered economy is picking up steam.þþIreland was the first euro zone state to complete a bailout and its improving economic data and successful return to bond markets are being held up by the European Union as an example of austerity rebalancing an economy.þþThe number of people claiming unemployment benefit in Ireland fell for the 20th successive month in February, bringing the jobless rate to 11.9 percent, compared with a 2012 high of more than 15 percent and 12 percent in the previous month.þþThe rate is now just below the euro zone average of 12.0 percent and the decline should support economic growth, which analysts see at 2.2 percent this year.þþBut the headline numbers will still take time to trickle down to the country's 4.6 million people, who have endured tax hikes and salary cuts after a property crash forced the state to rescue its banks.þþÿThe unemployment rate remains the key indicator as far as the economy is concerned and steady progress is being made in terms of bringing it down,ÿ said Alan McQuaid of Merrion Stockbrokers.þþÿIt does now appear as though the jobless rate has peaked, and we are looking for it to fall back to 11.5 percent on average this year.ÿþþIreland's progress is being closely monitored by Portugal, which is on course to leave its bailout in May, and Greece.þþData this week also showed the proportion of mortgages in arrears - one of the biggest problems for a still struggling financial sector - starting to fall and consumer sentiment at its highest in nearly seven years.þþThe number claiming jobless benefits fell by 2,500 to a seasonally adjusted 398,300, which is down from 450,000 shortly before Ireland sought its EU/IMF bailout in 2010.þþÿJobs growth is happening but at a slow pace,ÿ said Mark Fielding, head of the Irish Small and Medium Enterprises Association. ÿIssues such as the high percentage of long-term unemployed persons and those caught in a social welfare trap continue to be key concerns.ÿ
Source: NY Times
