Small fall in Irish jobless total

The unemployment rate in the Irish Republic fell in October for the first time in almost two years to 12.5%, down from 12.6% in September.

The monthly unemployment rate last fell in December 2007, when 4.7% of the workforce was jobless.

The number of people claiming unemployment benefits fell in October by more than 7,400 to 412,407.

Meanwhile, credit rating firm Fitch has cut the nation's credit rating, citing the severity of its economic downturn.

The move, the second in just over six months, reduced the Irish Republic's sovereign rating to 'AA-' from 'AA+', missing out the 'AA' rating.

But Fitch put the outlook for the rating as "stable", due to Dublin's aggressive measures to solve its problems.

Job worries

However, some economists have warned that a series of one-off factors could have led to just a temporary drop in the jobless total, and the unemployment rate may be heading towards 15% in 2010.

"On the surface these numbers are very encouraging and suggest that the jobless rate has peaked... they at least buy the government some time," said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin.

But he said that the reopening of Ireland's universities in September, as well as rising emigration and increased government job-training programmes, could be skewing the latest figures.

"Anecdotal evidence suggests that many graduates who couldn't find a job have emigrated or returned to further education," he said, adding that job-training positions last for just six months.

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