The latest unemployment figures from the Central Statistics Office (CSO) show that the Irish jobs market remains generally strong. While the jobless rate has risen over the past year, at 5 per cent it remains low. And the unemployment rate for the prime working age population aged 25 to 64 remains is just 3.8 per cent.
The flipside of these trends has been continued strong employment growth, with the latest CSO figures for the second quarter of this year showing a 2.3 per cent annual rise. There are some subsequent signs that jobs growth could be slowing, which would be no surprise given the extent of the post-Covid surge, though the third quarter labour force figures will be the best indicator here.
One aspect of the unemployment figures which has attracted comment is the rise in youth unemployment – relating to those between 15 and 24 years of age – which is now at 13.4 per cent, up from 10.9 per cent a year earlier. At this age, many young people are in further education and are thus excluded from the data. Some have just left third level and are seeking work, which may take time. Youth unemployment is traditionally higher and the EU average is just under 15 per cent.
Nonetheless, the rise in youth unemployment here is a trend which needs to be watched. While there is no clear picture of why it has happened, it may in part indicate a shortage of options suitable for those who do not go to college. The State tries to assist here through measures such as promoting apprenticeships, temporary placement programmes and proactive advisory services.
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More may need to be done in these areas, given the recent trends. Investment in ensuring young people do not fall into longer-term unemployment is money well spent.
The increase in youth unemployment may also indicate general softness in areas of the market, despite labour shortages in others. The impact of AI on entry-level positions may also be a factor. The indications are that the jobs market remains broadly healthy, but this trend of rising youth unemployment does require careful monitoring.
