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Unemployment in Ireland falls to a 21-year low

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The unemployment rate in Ireland fell to 4.2 percent in July, the lowest rate in 21 years.

That was down from 5.8 percent in July 2021, according to the CSO’s latest report.

This is also lower than the 4.8 percent pre-pandemic unemployment rate reported by the CSO in February 2020.

The seasonally adjusted number of unemployed last month is now 113,000, down 900 from June.

The seasonally adjusted number of unemployed men was 58,200 last month and that of women was 54,800.

The report also showed that the seasonally adjusted number of unemployed fell by 36,000 year-on-year as economic activity accelerated following lockdowns brought on by the Covid pandemic.

In May, the CSO announced that the workforce had risen to over 2.5 million, exceeding a target set by the government two years earlier.

The strong workforce is also reflected in income tax receipts to date – data released this week shows that US$2.5bn was paid last month.

“Despite inflationary pressures and the ongoing war in Ukraine, the unemployment rate is expected to continue its downward trend in the coming months,” Indeed jobs economist Jack Kennedy wrote in a note.

Grant Thornton’s chief economist Andrew Webb agreed that the job market is holding up “remarkably well” amid persistent inflationary pressures.

“Significant pressure on the cost of living means we’re in a ‘austerity economy’ where many households are having to redirect some spending from desirable things to essential spending,” he said.

“This is expected to lead to a downturn in the labor market, but encouraging is that key sectors such as life sciences, agrifood and professional services are performing well and job vacancies are holding up.”

In its quarterly economic outlook published last week, the Ibec Group assumes that unemployment will average around 5 percent for the year.

The report states that “there have been some signs of a modest slowdown in labor demand amid rising cost pressures on businesses”.

As employment rates continue to rise, employers are choosing to introduce incentives to incentivize workers to change jobs and fill vacancies.

Morgan McKinley’s Quarterly Employment Monitor showed that there was a 9 percent increase in new job openings in the second quarter compared to the first quarter.

According to the report, wage packages for jobs in some areas have risen 15 percent year-to-date. Almost half of Irish workers expect a pay rise in the next 12 months, according to Bank of Ireland’s latest Economic Pulse Survey, released last month.

Teleworking is also among the top factors for workers considering a job change.

Half of those surveyed by Morgan McKinley said half of candidates would not apply for a job at a company that does not offer full-time remote work as an option for its employees.

https://www.independent.ie/business/irish/unemployment-in-ireland-falls-to-21-year-low-41889919.html Unemployment in Ireland falls to a 21-year low

Fry Electronics Team

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