The State’s labour market was described as being “exceptionally tight” last month, with the unemployment rate sticking at 4.1 per cent.
The latest data from the Central Statistics Office showed that the seasonally adjusted unemployment rate has now been at an almost constant 4.1 per cent since February, bar an increase to 4.2 per cent in June. The rate is down from 4.4 per cent in August 2022, and has fallen from as high as 7.6 per cent during the pandemic in March 2021.
The seasonally adjusted number of people unemployed was 111,500 in August, compared with 112,200 in July.
There was a decrease of 4,100 in the seasonally adjusted number of people unemployed in August 2023 when compared with a year earlier.
For males, the August 2023 unemployment rate was 4.3 per cent, unchanged from July and up from 4.1 per cent in August 2022.
The August unemployment rate for women was also unchanged form July, remaining at 3.9 per cent, and down from a rate of 4.6 per cent in August 2022.
The youth unemployment rate – among those aged between 15 and 24 – rose to 11.2 per cent in August, up from a revised rate of 10.8 per cent in July.
Andrew Webb, chief economist at Grant Thornton Ireland, said the CSO’s unemployment figures for August “continue to reflect an exceptionally tight labour market”.
He said this is “great news for the people in jobs and great news for the Government”, as income tax receipts reached €2.5 billion in August, up 8.2 per cent on the same month last year.
“The tight labour market is proving challenging for those employers when looking for staff. With fewer unemployed, casting the net wider for talent, through attracting people to Ireland or addressing barriers to employment for the economically inactive, will become increasingly important,” he said.
Jack Kennedy, senior economist at job site Indeed, warned that there is a challenge in balancing such a strong economy with the individual experiences of some households amid high inflation.
“Higher prices and increased energy and mortgage costs have affected consumer sentiment and could lead to a wage price increase spiral as employees seek better pay or move jobs to achieve it,” he said.
He advised that in a labour market that is effectively “at capacity”, employers should focus on policies that will retain staff and make a business more attractive to candidates, such as equal and transparent pay, flexible working, good employee benefits and ensuring staff are motivated and energised.
