Ireland’s Unemployment Rate Holds at 5% in August as Labour Market Shows Signs of Softening

Ireland’s unemployment rate remained at 5% in August, unchanged from the previous month, according to new figures from the Central Statistics Office.

The CSO revised July’s unemployment rate down to 5% from its earlier estimate of 5.1%. The latest figure is slightly higher than the 4.9% recorded in August last year.

The monthly unemployment rate for men stood at 4.8% in August, matching the revised July figure and falling from 5% a year earlier. For women, the unemployment rate declined to 5.1% from a revised 5.2% in July, but remained above the 4.9% recorded in August 2025.

Youth unemployment also edged lower. The monthly rate for people aged under 25 fell to 12.3% in August from a revised 12.4% in July.

The number of unemployed people, adjusted for seasonal factors, stood at 147,100 in August. That was down from 148,300 in July but 1,900 higher than the figure recorded during the same month last year.

The figures point to a labour market that remains relatively resilient but has shown some signs of weakening during 2026.

Jack Kennedy, senior economist at hiring platform Indeed, said unemployment had followed a pattern of slightly higher readings this year. Revised unemployment rates of 5% have been recorded in five of the first eight months of 2026, while the rate was 4.9% in the other three months.

Kennedy said the modest increase should be considered against a backdrop of continued global economic uncertainty.

He pointed to instability in energy markets linked to the unresolved conflict between the US and Iran, saying higher energy and fuel costs were adding pressure to businesses and households.

Despite those challenges, employment has continued to grow. The latest Labour Force Survey showed that the number of people in employment increased by 21,200 in the year to the second quarter, bringing total employment to almost 2.84 million.

However, the number of unemployed people also increased during the period, rising by 10,100. Long-term unemployment rose by 7,200.

Kennedy said the figures suggested the Irish labour market was gradually losing some momentum and that developments would need to be watched closely in the coming months.

The unemployment rate remains well below the levels seen during previous periods of severe economic weakness, but the rise in unemployment over the past year indicates that conditions are becoming less favourable for some workers.

The latest data will be closely monitored by policymakers and businesses as Ireland faces continued pressure from global energy costs, inflation and wider economic uncertainty.