Ireland’s unemployment rate increased to 5% in June, reaching its highest level in three months as the number of people out of work continued to edge higher, according to new figures released by the Central Statistics Office (CSO).
The seasonally adjusted unemployment rate rose from 4.9% in May and was also above the 4.6% recorded in June last year, indicating a gradual easing in what has been a historically tight labour market.
The CSO said the estimated number of unemployed people increased to 145,100 in June, compared with 142,000 the previous month. Compared with the same period in 2025, the number of unemployed people rose by 8,900.
The latest data showed differing trends across demographic groups. The unemployment rate for men reached 4.6% in June, slightly higher than the 4.5% recorded in May but below the revised figure of 4.8% reported a year earlier.
Women’s unemployment continued to trend upward, rising to 5.4% from 5.3% in May. The figure also marked a notable increase from 4.4% in June 2025.
Youth unemployment recorded the sharpest monthly increase. The rate for younger workers climbed to 10.8% in June, compared with 9.9% the previous month, highlighting continued challenges facing people entering the labour market.
Despite the rise in unemployment, economists said the overall employment picture remains relatively strong by historical standards.
Kate English, chief economist at Deloitte Ireland, said the labour market has softened gradually over the past year but continues to reflect an economy operating close to full employment.
She noted that while the increase from 4.6% a year ago suggests some easing after several years of exceptionally strong labour demand, the adjustment has been measured rather than abrupt.
According to English, employment conditions remain resilient when compared with both Ireland’s historical performance and labour markets in many other advanced economies.
She said attention will now turn to the Labour Force Survey for the second quarter of 2026, which is expected later this summer. The survey will provide a broader picture of employment trends across sectors and help determine whether the recent increase in unemployment represents the beginning of a more sustained return to normal labour market conditions following an extended period of rapid job growth.
The latest figures come as Ireland continues to navigate slower global economic growth, changing business conditions and evolving labour market demands. While unemployment has edged higher over recent months, the rate remains relatively low compared with long-term averages, suggesting that the labour market continues to show resilience despite signs of moderation.
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