The State’s unemployment rate crept up again in the final month of 2023, suggesting a cooling of the labour market as job postings continue to fall.
The seasonally adjusted unemployment rate reached 4.9 per cent in December, up from 4.8 per cent in November and continuing a steady increase since April of last year.
The still historically low rate of 4.9 per cent equates to a total of 136,300 people who were unemployed in the State in December 2023, an increase of 1,700 people compared with November.
The number of people unemployed increased by 19,200 compared with a year previously in December 2022, when the unemployment rate sat at 4.3 per cent.
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The youth unemployment rate for those aged between 15 and 24 rose to 13.4 per cent in December, from a rate of 13 per cent in November of last year.
The seasonally adjusted number of males unemployed rose to 75,000 in December 2023, compared with 73,700 in November. Meanwhile, the number of females unemployed increased from 60,800 to 61,300.
Pawel Adrjan, director of economic research for Europe and Asia at job site Indeed, said that 2023 was a year of “gradual decline” for job postings.
Following a job posting peak in February 2022 at 65 per cent above pre-pandemic levels, he said this had fallen to 26 per cent by October 2023, and just 16 per cent by the end of December.
Mr Adrjan said there was “cause for optimism” looking ahead to 2024, as the Central Bank has predicted that unemployment will remain below 5 per cent out to 2026.
“This is despite warnings that the economy is shifting to a slower growth path amid higher interest rates and a slowdown in global economic activity,” he said.
He noted that the regulator predicts a contraction in GDP this year for the first time since 2012, but that the domestic Irish economy will grow by 1.5 per cent.
“If the Central Bank is right and unemployment remains under 5 per cent in 2024, employers in many sectors may continue to struggle to find and recruit staff, a frustrating byproduct of low unemployment, but one that reflects an otherwise positive economic position,” he said.
“Despite some remaining labour availability, sectors continue to grapple with labour shortages, and if participation levels in Ireland remain high, it could potentially fuel wage hikes and consequent inflationary pressures if costs are passed on to consumers,” he added.
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