Unemployment Reaches Four-Year High

The latest Labour Force Survey indicates a significant shift in the job market, revealing that unemployment has hit a four-year high. The unemployment rate now stands at 74.7%. This figure reflects an increase of 25,900 individuals out of work compared to last year.

Unemployment Among Young Adults

The survey highlights a concerning trend among younger workers, particularly those aged 15 to 24. Unemployment in this group increased to 14.1%, rising from 11.5% a year prior. The total number of unemployed individuals in this demographic is now 54,800, marking an increase of 9,400.

Impact of Automation on Job Opportunities

There are growing concerns regarding the hiring practices of companies, particularly for young graduates. Many organizations have slowed or halted recruitment due to increased automation in basic roles. Dermot O’Leary, Chief Economist at Goodbody, noted that the rising unemployment rates among younger workers may also reflect broader international trends in the job market.

Sector-Specific Trends

The job market is further strained by increasing unemployment across various age groups, particularly those aged 20-24 and 35-44. Despite overall employment growth in recent years, there is now a clear statistical trend indicating a softening labor market.

• Public Administration: Down 6.8% year-on-year, representing the weakest sector despite increased public spending.
• Accommodation and Food: Identified as the second worst-performing sector amid calls for a VAT reduction in 2026.
• ICT Employment: Experienced a 4.4% decline, with computer programming jobs falling by 14% year-on-year.

Challenges in Labour Market Participation

On a quarter-to-quarter basis, employment growth was minimal, only increasing by 0.1%. Year-on-year, the rise was 1.1%, the weakest since early 2021. Andrew Webb, Chief Economist at Grant Thornton Ireland, emphasized that while the job market continues to show some growth, the overall conditions indicate a notable softening.

One crucial factor to consider is the presence of a potential additional labour force, comprising 119,200 individuals with varying connections to the job market. Although this number has decreased since the previous year, it remains larger compared to early 2023. Many of these individuals face barriers like illness, disability, or caregiving responsibilities, hindering their employment prospects.

Employment and Work From Home Trends

Interestingly, over 60% of those employed reported that they do not work from home. This statistic suggests a fundamental shift in how work is structured as companies adapt to current challenges.

Overall, the latest figures underscore the urgent need for policies aimed at improving labor market participation, particularly for underserved groups facing barriers to employment.