Ireland’s Labour Market Shows Continued Strength Amidst Gradual Slowdown

Ireland’s labour market demonstrated continued resilience in the fourth quarter of 2025, with employment levels remaining robust despite signs of a gradual slowdown in growth. Recent data from the Central Statistics Office (CSO) indicates a 2% year-on-year increase in employment, bringing the total number of people employed to 2,833,100.

Employment Figures and Trends

The CSO reported that 56,700 more people were employed in Q4 2025 compared to the same period in the previous year. This growth, while positive, represents a moderation from the 3% increase observed in Q4 2023. The unemployment rate stood at 4.4% in Q4 2025, a slight increase from 4% in Q4 2024, but lower than the 5.3% recorded in Q3 2025.

Specifically, the number of unemployed individuals aged 15-74 years reached 128,200, an increase of 12,100, or 10.4%, year-on-year. The youth unemployment rate (15-24 years) was 9.8% in Q4 2025, a slight decrease from 9.9% in Q4 2024, with the total number of young unemployed remaining unchanged at 35,000.

Sectoral Performance

Employment growth was particularly strong in several key sectors:

• Construction: +9% (to 192,000)
• Industry: +6.6% (to 354,000)
• Education: +7.7% (to 258,000)
• Health: +2.8% (to 393,000)

Although, some sectors experienced employment declines:

• Wholesale/Retail: -0.9% (to 324,000)
• Hotels/Restaurants: -0.7% (to 183,000)
• Information and Communications Technology (ICT): -7% (to 184,000)

Part-Time Work and Remote Work

Part-time employment accounted for 20.6% of the total workforce, with 582,600 individuals working part-time. Of these, 20.8% (121,300) were classified as underemployed, indicating a desire to work more hours for increased pay.

The trend towards remote work appears to be reversing. The number of people working from home at least some of the time decreased by 1.6% to 956,700 in Q4 2025. Almost two-thirds of those employed (1,865,600) reported never working from home, exceeding pre-pandemic levels.

Expert Commentary

Kate English, Chief Economist at Deloitte Ireland, noted that the labour market has “softened” in 2025, with an annual growth rate of 2%. She anticipates more moderate economic growth in Ireland in 2026. CSO

Conall Mac Coille, Group Chief Economist at Bank of Ireland, believes employment growth is gradually slowing, forecasting growth of 1.5% in both 2026 and 2027, which he describes as a “robust but more sustainable pace.”

Government Response

Minister for Enterprise, Tourism and Employment Peter Burke highlighted the continued strength of the Irish labour market and emphasized the government’s commitment to balanced regional enterprise development. He pointed to widespread job growth outside of Dublin, particularly in construction, transportation and education.

Looking Ahead

While the Irish labour market continues to perform well, the data suggests a shift towards a more moderate growth trajectory. The gradual slowdown in employment growth, coupled with the slight increase in the unemployment rate, indicates a potential recalibration of the economic landscape in 2026. Continued monitoring of sectoral trends and labour force participation will be crucial in navigating this evolving environment.