Unemployment Rate Surges to Four-Year High According to Latest CSO Labour Force Survey

The latest Labour Force Survey (LFS) from the Central Statistics Office (CSO) reveals a rise in the unemployment rate to 5.3%. This figure marks the highest unemployment rate in four years, reflecting a notable increase of 0.8% from the previous quarter. The survey highlights that the increase was particularly significant among the 15 to 24 and 35 to 44 age groups.

Key Findings from the Labour Force Survey

According to the survey results, the number of employed individuals increased by 30,600, reaching a total of 2,825,500. This represents a 1.1% increase over the year leading to the third quarter of 2025. However, this growth in employment contrasts with a rise in unemployment numbers.

Unemployment Statistics

• Unemployed individuals aged 15-74 reached 155,400, an increase of 25,900 year-on-year.
• Seasonally adjusted, the unemployed population between July and September 2025 was 147,100. This marks an increase of 12,500, or 9.3%, from the previous quarter.
• Long-term unemployment saw an uptick, with 34,400 individuals unemployed for 12 months or more, up by 7,400 from the previous year.

Labour Market Trends

The total workforce has continued to grow, with an increase of 56,500 over the past year, bringing the total to nearly 3 million. Andrew Webb, chief economist at Grant Thornton Ireland, noted that while job creation remains steady, there are growing challenges in workforce activation. Barriers such as affordable childcare and health-related issues are preventing broader participation in the labor market.

Sector-Specific Employment Changes

Sectoral analysis shows mixed results across industries. While employment has increased in sectors such as Industry and Human Health, the Information and Communication sector saw a decline of 8,000 jobs in the past year, totaling 180,600 positions. Additionally, the Hospitality sector decreased from 200,000 to 191,300 jobs, and Public Administration saw a reduction from 153,600 to 143,200.

Dermot O’Leary, chief economist at Goodbody, indicated that the drop in ICT employment by 4.4% might be influenced by AI automation, a concern echoed in recent PMI surveys for Ireland.

Remote Work Trends

• Approximately one million people are engaged in occasional remote work.
• 557,800 individuals work from home more than half the time, down from a peak of 774,300 in Q2 2021.
• The number of those working from home for at least one hour increased to 430,000, up from 400,500 a year prior.

The data from the latest CSO Labour Force Survey indicates that while the overall employment figures are strong, the dynamics of the labor market are shifting. Monitoring these trends will be crucial for government policy and workforce development in the coming months.