Business

Jobless numbers rise to 4.2% but Ireland remains close to full employment

Despite marginal increase in official figures, unemployment rate stays anchored near historical low of 4%

The latest figures show the youth unemployment rate, those aged 15-24 years without a job, increased to 8.1 per cent. Photograph: iStock

Eoin Burke-Kennedy
Wed Jul 3 2024 - 11:49

Unemployment in the Irish economy rose marginally to 4.2 per cent in June, up from 4 per cent the previous month.

Central Statistics Office (CSO) figures on Wednesday indicated the seasonally adjusted number of people classified as unemployed was 117,100 in June, compared with 113,000 in May.

This represented an increase of 4,100.

The latest figures show the youth unemployment rate, those aged 15-24 years without a job, increased to 8.1 per cent, from a rate of 7.7 per cent in May.

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In the Irish context, an unemployment rate of approximately 4 per cent is considered close to full employment.

The strength of labour markets here and across the Europe in the face of higher interest rates and higher living costs has been a feature of the recent period.

The Irish economy is forecast to grow at a modest but steady pace in 2024 and 2025 as inflation wanes and consumers enjoy a bounce in real wages.

This is expected to keep unemployment anchored near 4 per cent.

In its latest quarterly bulletin, the Central Bank noted that “though the pace of employment growth has slowed, labour market conditions remain tight”.

The regulator said the unemployment rate was stable at close to historical lows of just over 4 per cent, even with increases in labour supply from rising participation and net inward migration.

The unemployment rate is projected to remain low, averaging 4.5 per cent out to 2026, it said.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times

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