Unemployment rises once again as latest figures suggest 'loss of pace'
According to job search site Indeed, Irish postings were 23.4% above pre-pandemic levels at the start of December, which was down from 25.5% at the end of October, 27% at the end of September and well below a recent high of 65% in February 2022. Picture Denis Minihane.
Irish unemployment rose again after plateauing in October, with seasonally adjusted figures from the Central Statistics Office (CSO) reporting an increase to 4.8% last month.
Up from 4.7% in October and a low of 4.1% earlier this year, the increase reflects 132,700 people, an annual rise of 12,600 as global headwinds and rising interest rates seep into the Irish labour market.
Speaking on the CSO's latest findings, Chief Economist at Grant Thornton Ireland, Andrew Webb said the figures reflected an economic picture that suggests "a loss of pace," after a year of strong momentum that has "powered the economy through a series of headwinds from high inflation and nervous consumers."
"In a week where tax revenues have surprised on the upside, providing the exchequer with a boost after a few months of weaker returns, the good economic mood music will be tempered slightly by these unemployment figures edging up."
According to job search site Indeed, Irish postings were 23.4% above pre-pandemic levels at the start of December, which was down from 25.5% at the end of October, 27% at the end of September and well below a recent high of 65% in February 2022.
In addition, Senior Economist at the job site, Jack Kennedy noted a drop in wage growth from a 2023 peak of 5.4% in March to a low of 3.8% in July and August, however, he added it has "ticked up" again in recent months to 4.1% in September and 4.4% in October.
"Hard-to-fill roles, such as in healthcare and technical operations have recorded particularly strong wage growth, which may support robust underlying inflation pressures in coming quarters," Mr Kennedy continued.
The rate of youth unemployment, which reflects job seekers between 15 and 24, rose to 12.8% in November up from a revised rate of 12.6% in the previous month.
The seasonally-adjusted number of unemployed males increased only marginally to 72,300 in November, compared with 72,200 in October, while the seasonally-adjusted number of unemployed women increased by 800 people over the month to 60,400.
Last week, the CSO reported a 1.9% contraction in Irish gross domestic product (GDP), with the Organisation for Economic Co-operation and Development (OECD) warning that weaker exports coupled with a drop in investment will see the Irish economy decline by 0.6% in 2023.
While noting that an unemployment rate of 4.8% was still very positive, Mr Webb pointed out that next year, when the economy is expected to grow more slowly, "unemployment figures will become an even more important indicator of our economic health."
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