Ireland Unemployment Rises as Tech Sector Jobs Decline, CSO Reports

Dublin: Ireland’s unemployment rate increased during the first quarter of 2026, driven largely by job losses in the technology sector, according to the latest figures from the Central Statistics Office (CSO).

The CSO reported that the number of unemployed people rose by 18,000 during the first three months of the year, pushing the national unemployment rate up by 0.6 percentage points to 4.9%. On an annual basis, unemployment increased by 17,600, representing a rise of 14%, bringing the total number of unemployed people to 141,800.

Technology Sector Records Biggest Decline

The sharpest fall in employment was recorded in the Information and Communications sector, where 20,300 jobs were lost, representing a decline of 10.7% during the quarter.

Within the sector, the largest reduction occurred in computer programming and consultancy services, which accounted for a loss of 16,200 jobs.

Long-Term Unemployment Remains a Concern

The CSO also reported that 41,300 people were classified as long-term unemployed during the first quarter, having been out of work for at least 12 months. Of these, 15,500 individuals had been unemployed for several years.

While annual employment levels showed a modest increase of 400 jobs, bringing total employment to 2.79 million, employment fell compared to the final quarter of 2025, when 2.83 million people were in work.

Fewer Hours Worked

The survey found that average weekly hours worked declined by 0.2% compared with the same period last year. The most significant reductions were recorded in professional, scientific, and technical occupations.

The number of employees working remotely also fell during the quarter. Meanwhile, the number of people working entirely on-site increased by 46,600 (2.7%) to 1.8 million, surpassing pre-pandemic levels for the first time.

Economists Express Concern

Commenting on the figures, Conall Mac Coille, Group Chief Economist at Bank of Ireland, described the Labour Force Survey results as concerning.

He noted that employment declined by 0.6% to approximately 2.8 million people and that annual job creation had effectively stalled. Mac Coille said the rise in unemployment to nearly 5% reflects growing economic uncertainty, which continues to affect hiring and investment decisions across key sectors.

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