Unemployment rate rises slightly in September

An economist said the 'figures will prompt some concern among the Cabinet about what lies ahead in the economy'

The unemployment increased 0.1% compared to August with 11.9% of people aged 15 to 24 unemployed.  File photo: Lauren Hurley/PA

The unemployment rate ticked up slightly in September to 4.2% which could cause “some concern” for the Government ahead of next week’s budget.

According to the latest data from the Central Statistics Office (CSO), unemployment increased 0.1% compared to August with 11.9% of people aged 15 to 24 unemployed — up from 11.4%. The unemployment rate among 25- to 74-year-olds remained unchanged at 3.1%.

Andrew Webb, chief economist at Grant Thornton Ireland, said with corporation tax receipts starting to come in “lower than expected” and the latest economic forecasts scaling back on growth projections, “it is perhaps unsurprising that unemployment edged higher in September”.

“These unemployment figures will prompt some concern among the Cabinet about what lies ahead in the economy,” he said.

Mr Webb said it is too early to say if this slight increase marks the start of a downturn but “it is reflective of the concerns that have been building over recent months”.

On Tuesday, the final Exchequer returns to be published before the Budget reveal a drop in corporation taxes for the second month in a row. Receipts were down by €0.7bn, or 16%, in the quarter.

Conor Delves, statistician with the CSO, said the seasonally adjusted number of people unemployed was 115,700 in September 2023, compared with 113,000 in August 2023.

“There was a decrease of 300 in the seasonally adjusted number of people unemployed in September 2023 when compared with a year earlier,” she said.

Jack Kennedy, senior economist at jobs site Indeed, said while the labour market remains tight this could be an early sign of a possible softening and an easing of the pressures on recruitment.

“This will be a welcome development for employers, but less so for employees looking to compensate for the rise in living costs by obtaining higher pay or finding higher-paid roles,” he said.