Unemployment ticks up slightly to 4.9%

Full employment is often recognised as an indicator of economic resilience, however some have also argued that persistent high employment in an inflationary environment could put pressure on businesses.

Economist Jim Power recently wrote that tight labour markets continue to pressurise services sector inflation.

Unemployment ticked up slightly again in December but the overall labour market remained tight going into the new year.

The unemployment rate rose to 4.9% in December, a slight rise from 4.8% in November, according to new figures from the Central Statistics Office (CSO).