New labour market data from the Central Statistics Office indicates that unemployment has reached its highest point since 2021. The unemployment rate for people aged 15 to 65 rose to 5.3 percent in the third quarter of the year, compared with 4.5 percent in the same period of 2024.
The figures show that 155,400 people aged 15 to 74 were unemployed, an annual increase of 25,900. Despite this trend, overall employment numbers continued to grow. Employment across the 15 to 89 age group rose by 30,600, bringing the total number of people at work to 2.82 million.
The employment rate for those aged 15 to 65 edged down slightly to 74.7 percent, while labour force participation dipped to 66.5 percent. The estimated labour force reached nearly 3 million people, up 1.9 percent year on year.
Youth unemployment also saw movement. The rate for younger workers fell to 47.5 percent from 50.9 percent a year earlier, although this figure includes young people both seeking work and those with limited attachment to the labour market.
Remote working habits continue to shift. More than six in ten employees reported never working from home. Close to one million people said they worked from home at least occasionally, while just over half a million said they worked remotely most of the time. This latter group has fallen significantly since early 2021, when remote work was far more widespread.
Total weekly hours worked across the economy increased by 0.6 percent compared with the same quarter last year, reaching 86.5 million hours.
Commenting on the figures, Andrew Webb, chief economist at Grant Thornton Ireland, noted signs of a labour market that is easing after several strong years. He pointed to a rise in unemployment alongside only modest gains in employment as indicators of cooling conditions.
He also highlighted a group of 119,200 people who have a weak but meaningful attachment to the labour market. While smaller than last year, this group remains larger than in 2023 and includes many individuals limited by illness, disability or caring duties. Webb suggested that increasing participation, rather than job creation alone, is now a key priority. Tackling barriers such as access to affordable childcare and health-related challenges will be essential to bringing more people into the workforce.
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