Dublin: Ireland’s unemployment rate has reached its lowest level in 24 years, according to the latest figures from the Central Statistics Office (CSO). The jobless rate, which stood at 4 percent in January, fell to 3.9 percent in February—the lowest since December 2000.
The CSO report highlights the remarkable strength of Ireland’s job market, coinciding with a record workforce of 2.8 million at the end of last year. A 4 percent unemployment rate is traditionally considered full employment, making the recent dip below this threshold a significant milestone. Analysts attribute this achievement to the country’s relatively high wages.
Broad-Based Decline in Unemployment
The report indicates that unemployment has decreased across all categories. The jobless rate among men dropped to 3.8 percent in February, down from 4 percent in January. For women, the rate declined from 4.3 percent in February 2024 to 3.9 percent this year.
Youth unemployment (ages 15 to 24) fell from 11.8 percent in January to 11.3 percent in February, while the rate for those aged 25 to 74 dropped to 2.8 percent—a 0.1 percentage point decrease from the previous month. Seasonal unemployment also saw a reduction, falling from 115,700 in January to 111,500 in February.
High Wages Fuel Job Market Strength
Alexander Judes, chief economist at recruitment platform Indeed, credited Ireland’s robust job market to its relatively high wages. Data shows Ireland’s annual wage growth averaged 4.6 percent, rising to 4.9 percent last month. The country is one of the few where wage increases have consistently outpaced inflation, resulting in real wage growth.
However, there are concerns that rising wages could contribute to inflationary pressures in the eurozone.
Wage Growth Outpaces European Peers
Ireland’s wage growth outperforms many of its European counterparts. France recorded a 1.6 percent increase, Germany 3 percent, Italy 3.4 percent, and Spain 4.8 percent. Wage growth in the U.S. stood at 3.1 percent, while the U.K. reported a higher rate of 6.1 percent.
According to CSO research, average weekly earnings in Ireland rose by 5.6 percent in the final quarter of 2024, with average hourly earnings increasing by 6.2 percent.
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