The number of people employed in the Republic has risen to a record high of 2.75 million as more immigrant workers and greater female participation meet the ongoing demand for labour in the economy.
The latest Labour Force Survey (LFS) indicated employment rose by 71,500 or 2.7 per cent to 2.75 million in the second quarter of 2024 compared with the same period last year.
Despite slowing global growth and increased geopolitical uncertainty, the Irish labour market continues to perform strongly.
The Central Statistics Office, which compiles the data, said changes in the labour force are typically influenced by shifts in the size of the working-age population, otherwise known as the demographic effect. In recent years this has been driven – in the main – by immigration, it said.
For investors, does it matter who wins the US election?
An Irish woman in Malta: ‘I miss my family and the greenery of home but not the driving rain’
Ronan Collins: ‘My mother always said: if your feet don’t feel right, the rest of you will suffer’
Pilita Clark: The dos and don’ts of the email introduction
This “positive demographic effect” contributed to an increase of 59,000 in the labour force in the year to second quarter, the CSO said.
The other factor driving increased levels of employment is the number of women in the labour force, which rose to a record 61.4 per cent in the second quarter.
While female participation in the Irish labour force lags the international average, it jumped during the pandemic with flexible working arrangements said to suit more women, particularly those with additional caring roles.
Countries with higher levels of female empowerment tend to be more economically productive. At the height of the Celtic Tiger between 2007 and 2008, female participation reached 57.6 per cent before falling in the immediate aftermath of the crash. The pandemic appears to have changed the pattern again with more women availing of flexible working hours.
[ Pensioners joining workforce at fastest rate - CSOOpens in new window ]
According to the LFS, the sectors that saw the largest year-on-year growth in employment were the professional, scientific and technical activities, which increased by 22,700 or 12.7 per cent, and the industry sector which increased by 21,100 or 6.6 per cent.
The number working in the information and communication sector, which includes some of the biggest names in tech, also increased by 11,500 or 6.5 per cent.
Ongoing demand for labour in the economy is being met by increased immigration and greater levels of female participation.
The estimated total number of hours worked per week in the second quarter increased by 1.7 million hours or 2 per cent to 87.3 million hours. The survey indicated the employment rate for those aged 15-64 was 74.4 per cent.
The number of people classified as being unemployed increased by 9,100 to 131,200 in the year to the second quarter, the CSO said, with the unadjusted unemployment rate rising from 4.4 per cent to 4.6 per cent as a result.
Goodbody economist Dermot O’Leary noted that employment on a seasonally adjusted basis was now up 17 per cent “from its pre-Covid level”.
“The data suggests ongoing growth in the domestic economy in Ireland,” he said.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
