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Ireland Job Market Stalls as Unemployment Rises to 4.9% Amid Sectoral Declines

Unemployment in Ireland rose sharply in the first three months of the year, with the number of jobless people increasing by 17,600, or just over 14%, to 141,800, according to the latest Labour Force Survey from the Central Statistics Office (CSO). The figures pushed the unemployment rate up to 4.9%.

The data also points to weakening momentum in parts of the labour market, even as overall employment levels remained largely unchanged year on year.

The information and communication sector recorded the steepest fall in employment, dropping by 20,300 jobs, or 10.7%. Within that category, computer programming and consultancy roles saw the largest decline, down by 16,200 positions.

Long-term unemployment also rose significantly. The CSO reported 41,300 people unemployed for 12 months or more, an increase of 15,500 compared with the same period last year, highlighting growing structural pressures within parts of the workforce.

Total employment edged up by just 400 people to 2,794,500, showing no meaningful annual growth. However, compared with the final quarter of 2025, employment fell from 2,833,100, indicating a quarterly decline.

At the same time, the labour force expanded modestly, rising by 18,000, or 0.6%, to 2,936,300. This marks the slowest annual increase in the workforce in five years.

Working patterns also shifted. Total weekly hours worked fell slightly by 0.2% to 86.3 million hours. The largest declines were recorded in professional, scientific and technical activities, down by 800,000 hours, and in the information and communication sector, which fell by 700,000 hours.

Remote working trends continued to adjust in the post-pandemic period. The number of people working from home declined by 44,800, or 4.3%, to 990,100, while those who never worked from home increased by 46,600, or 2.7%, reaching 1,796,200. For the first time, this figure surpassed pre-pandemic levels.

Economists offered mixed interpretations of the data. Deloitte Ireland chief economist Kate English described the near-flat employment figures as unusual in the context of Ireland’s long period of job growth since 2012, noting that while the slowdown may be temporary, it warrants close monitoring. She added that external factors, including energy pressures and global uncertainty, may be contributing.

Bank of Ireland chief economist Conall Mac Coille said the figures appear volatile, pointing to growth in full-time employment but a decline in part-time roles. He cautioned against over-interpreting the data, though he acknowledged signs of slower job creation, particularly in construction, manufacturing and the public sector.

Despite the rise in unemployment, economists stressed that underlying trends remain uncertain, with further data needed to determine whether the slowdown reflects temporary fluctuations or a broader cooling in the labour market.

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