Ireland’s unemployment rate edged lower in August, with new figures from the Central Statistics Office (CSO) showing a decline to 4.7%, down from 4.8% in July. The July rate was also revised slightly lower from an earlier estimate of 4.9%.
Despite the monthly improvement, unemployment remains higher than a year ago, when the rate stood at 4.1% in August 2024.
The breakdown of the latest figures shows differing trends across demographics. Unemployment among men stood at 4.9% in August, easing from 5% the previous month but above the 4% rate recorded a year earlier. The unemployment rate for women declined to 4.5%, down from 4.7% in July, but higher than the revised 4.3% in August last year.
Youth unemployment — covering those aged 15 to 24 — also fell slightly, dropping to 11.9% in August from a revised 12.1% in July.
The CSO reported that the seasonally adjusted number of people unemployed stood at 138,200 in August, down from 142,200 in July. However, compared with the same period last year, the number of unemployed people rose by 19,600.
Economists Highlight Volatility in Monthly Data
Commenting on the figures, Kate English, chief economist at Deloitte Ireland, noted that while July’s rise in unemployment had raised concerns — particularly in the youth category — monthly data should be interpreted with caution.
“One figure is an indication, not evidence of a trend,” English said. “Today’s data reveals the number of unemployed decreased to 138,200 in August compared to 142,200 in July. This means the unemployment rate also declined to 4.7%. For youth unemployment, the figure also declined, now sitting at 11.9%.”
English added that monthly unemployment estimates often display volatility but remain valuable in signalling broader labour market directions.
Job Growth Remains Resilient
Despite the year-on-year increase in unemployment, the economist highlighted ongoing strength in Ireland’s labour market. “Job growth is still strong in Ireland, with 63,900 additional people employed in the second quarter of 2025 compared to a year earlier,” she said.
Ireland’s unemployment rate also remains below the European Union average, while exchequer receipts for August showed continued strength in income tax, reflecting steady employment and earnings.
Looking ahead, English cautioned that external pressures may begin to influence labour market trends. “Next month we’ll see how employment performed in the third quarter and whether we may be seeing the impact from tariffs. With data emerging from the US and UK signalling a slowdown in labour markets, this is critically important to monitor here also,” she said.
