THE Isle of Man’s low rate of unemployment is being held down in some part by the new tighter rules on work permits in low skilled sectors.

Latest figures from the Council of Ministers - for the first quarter of the year - show that the Island’s unemployment rate stood at 2.2% at the end of March, which compares very favourably with the UK rate of 6% and the EU average of 7.5%.

The Council of Ministers’ quarterly economic report says, “The announcements by the Department of Trade and Industry (now the Department of Economic Development) in February and March 2009, concerning targeting work permit refusals towards new arrivals to the Island in five low skilled sectors where there is a clear availability of suitable Isle of Man workers, continues to limit local unemployment.”

In the 12 months to the end of March 2010, 8,577 work permits were issued, compared to 9,174 during 2009.

The report points out that in the five sectors – retail, hospitality, wholesale distribution, construction and office administration – permits are being issued for shorter periods, inflating the total. It adds: ‘In reality the numbers of people who have work permits has fallen more than these numbers would suggest.’

The quarterly report adds, “The Department of Economic Development continues to monitor the number of jobseekers alongside the number of vacancies in all sectors, and will continue to react appropriately if the employment situation deteriorates.”