Ireland’s economy has reached "technical full employment", with the seasonally adjusted unemployment rate dropping to 3.9% in February, according to new figures from the Central Statistics Office (CSO).
The latest data shows a slight improvement from January’s 4% rate and aligns with the historic lows seen in the early 2000s. Economists generally regard an unemployment rate of 4% or lower as an indicator of full employment, meaning little slack remains in the labour market despite economic pressures such as rising interest rates and living costs.
Alongside the UK and the US, Ireland is one of the few economies where wage increases have outpaced inflation, resulting in real wage growth for workers.
With unemployment at historic lows and wages continuing to rise, the Irish labour market remains resilient, reinforcing the country’s strong economic standing.
The latest data shows a slight improvement from January’s 4% rate and aligns with the historic lows seen in the early 2000s. Economists generally regard an unemployment rate of 4% or lower as an indicator of full employment, meaning little slack remains in the labour market despite economic pressures such as rising interest rates and living costs.
Key Figures from the CSO Report:
- Total number of unemployed: 111,500, down from 115,700 in January
- Annual decrease: 5,600 fewer unemployed compared to last year
- Unemployment rate (ages 25-74): 2.8%
- Youth unemployment rate (ages 15-24): 11.3%, down from 11.8% in January
Wage Growth and International Comparisons
The tight labour market has led to strong wage growth, with Ireland’s year-on-year wage increase averaging 4.9% in February.- Ireland’s wage growthexceeds the 2024 averages in:
- France (1.6%)
- Germany (3%)
- Italy (3.4%)
- Similar to: Spain (4.8%)
- Higher than: the US (3.1%), but lower than the UK (6.1%) and the Netherlands (6.3%)
Labour Market Outlook
Alexandre Judes, an economist at Indeed, noted that Ireland’s labour market remains exceptionally strong, contributing to higher-than-average wage growth compared to many European countries.Alongside the UK and the US, Ireland is one of the few economies where wage increases have outpaced inflation, resulting in real wage growth for workers.
With unemployment at historic lows and wages continuing to rise, the Irish labour market remains resilient, reinforcing the country’s strong economic standing.
