Ireland’s unemployment rate increased to 5.1% in July, marking a slight rise from 5% in June, according to new figures released by the Central Statistics Office (CSO), as economists pointed to a gradual easing in what has been one of the country’s tightest labour markets in recent years.
The seasonally adjusted data showed that an estimated 149,900 people were unemployed in July, up from 147,100 in June. Compared with July last year, the number of unemployed people increased by 2,600.
The unemployment rate for men edged up to 4.9% from a revised 4.8% in June, although it remained below the 5% recorded in July 2025. Among women, the rate rose to 5.3% from a revised 5.2% the previous month and was also higher than the 5% recorded a year earlier.
Youth unemployment continued to climb, reaching 12.3% in July compared with a revised 11.8% in June, highlighting ongoing challenges for younger job seekers entering the labour market.
Revised CSO figures also showed that unemployment had already moved above the 5% mark earlier this year. February’s rate was revised to 5.1%, making it the first month since December 2021 in which unemployment exceeded 5%. March was also revised to 5.1%, bringing the average monthly unemployment rate for the first seven months of 2026 to 5%.
Jack Kennedy, senior economist at hiring platform Indeed, said the updated figures suggest a gradual upward trend that warrants attention, although he stressed the increases have remained relatively modest.
He noted that Ireland’s unemployment rate averaged 4.7% during 2025 and said the latest revisions may increase concerns about the direction of the labour market if the trend continues. At the same time, he pointed out that businesses have been operating in an environment marked by global economic uncertainty and rising costs, prompting many employers to delay expansion plans or scale back recruitment.
Kennedy added that economists had broadly expected unemployment to rise to around 5% during 2026, making the latest figures consistent with earlier forecasts.
Kate English, chief economist at Deloitte Ireland, said the recent increase should be viewed as a normal adjustment rather than a sign of significant weakness.
She said Ireland has experienced exceptionally strong employment conditions since 2022 and remains close to full employment despite the modest increase in joblessness. According to English, the labour market continues to perform strongly by both historical and international standards.
Addressing the rise in youth unemployment, she noted that while the latest figure represents another monthly increase, the average rate for people aged 15 to 25 has been around 12.6% over the past decade, placing the current level within its longer-term range.
English said the monthly figures provide an early indication of labour market trends, while more detailed quarterly employment data due later this month is expected to offer a clearer picture of the economy’s underlying strength.
