Ireland's unemployment rate rose to its highest level in 17 years in the fourth quarter, far outstripping analysts' expectations and highlighting the tough task ahead of the new government, data showed on Tuesday. Irish seasonally adjusted unemployment rose to 14.7 percent between October and December from 13.7 in the previous three months, well above the 13.6 percent economists polled by Reuters had forecast.
The sharp increase will be sobering for Prime Minister Enda Kenny, who has spent his first week in power battling to get Europe to agree to cheaper rescue loans for Ireland and concessions to revive its banking sector. After the number of people claiming jobless benefit had fallen for four of the last five months, the Central Statistics Office (CSO) had estimated the unemployment rate would peak below 14 percent last year. Instead Ireland's unemployment rate hit 14.7 percent for the first time since 1994, before its property-fuelled "Celtic Tiger" economic boom reduced that figure below 4 percent.