Despite global economic conditions indicating a general downturn due to rising interest rates, the unemployment level in the State witnessed a surprising decrease in February. The seasonally adjusted unemployment rate dive to 4.2% in February, a drop from 4.5% in January; however, this figure rose slightly from 4.1% during February from the previous year.
Approximately 119,300 individuals make up the current unemployment rate, a decline compared to 129,300 from the previous month. Simultaneously, the Central Statistics Office (CSO) has reported an escalation of 6,500 in the seasonally adjusted quantity of unemployed people compared to the same month in the year prior. Additionally, the CSO also revealed a fall in the youth unemployment percentage, coming down to 10.5% from a modified 11.7% in January.
The encouraging unemployment data follows the February exchequer returns, disclosed on Tuesday by the Department of Finance. These showed an annual increase of 5.5% in the Government’s tax revenue, reaching €12 billion in that month. Mainly due to income tax, this robust performance, which was up nearly 6% from the last year, mirrored the thriving labour market conditions with an all-time high of 2.71 million individuals employed.
Despite elements like global political unpredictability and slowing down of the world economy, the labour market remains sturdy. The robust employment numbers, coupled with decreasing unemployment rates, are fuelling consumer spending, thereby aiding the domestic economy in the backdrop of declining exports from multinationals, according to Jack Kennedy from the recruitment platform Indeed.
Kennedy also mentioned that as consumers sense a mitigation in cost-of-living pressures, optimism is improving, although much proof of better times is sought before this sentiment becomes deeply established. He also hinted at the challenges employers are likely facing, with recruiting proving to be a hurdle at present, notably when wage growth has decelerated. This suggests that several employers cannot afford to propose elevated salaries to prospective employees. Despite this, he noted that Irish job posts on Indeed are 16% above the levels before the pandemic by the end of February. However, there is a dip from 23% in January.