Monthly unemployment remains at 5%
The main unemployment rate was 5% in August 2026, unchanged from the revised July 2026 rate and up from the 4.9% recorded in August 2025.
There was an increase of 1,900 in the seasonally adjusted number of people unemployed in August 2026 when compared with a year earlier.
Jack Kennedy, senior economist at hiring platform Indeed, comments on the latest CSO data:
The main monthly unemployment rate was 5% in August 2026, unchanged from the revised rate of 5% in July 2026.
The figure follows a trend of slightly higher unemployment rates this year with revised rates of 5% recorded in five of the eight months of 2026 and 4.9% in each of the other three.
It comes as Indeed’s Irish Job Postings Index shows that hiring demand has broadly stabilised in recent months after a period of decline. Job postings, a real-time measure of employer demand, were at 2.4% below their pre-pandemic baseline as of August 28, having fallen by almost 11% over the past year.
The modestly higher monthly unemployment rates recorded this year should be viewed in the context of considerable global instability. The lack of a lasting resolution in the conflict between the US and Iran is creating ongoing volatility in energy markets, adding to inflationary pressures and increasing fuel and other costs for businesses and households.
Against this backdrop, the Irish labour market has remained relatively strong. The latest Labour Force Survey showed that employment increased by 21,200 in the year to the second quarter, bringing the total number of people in employment to almost 2.84 million.
However, unemployment also increased by 10,100 over the same period, while the number of people in long-term unemployment rose by 7,200. These figures underline the gradual softening in the labour market and the importance of monitoring whether that trend continues over the coming months.
Ahead of Budget 2027, employers are indicating that maintaining employment growth will require businesses to have the confidence and capacity to expand. Business groups argue that easing cost pressures would give firms greater scope to invest, grow and create jobs.
They are seeking measures to reduce the cost of doing business, accelerate the delivery of housing and energy infrastructure, and support employer investment in skills, innovation and AI adoption. Continued progress in these areas would support continued employment growth and help Ireland’s labour market remain resilient in a more uncertain international environment.
