Ireland’s labour market is tighter than ever as the number of people in employment rose to a record of 2,574,000 in the final quarter of 2022, an increase of 2.7pc over the previous year, according to the Central Statistics Office.
There were an additional 68,600 people at work at the end of last year compared with the final quarter of 2021 as the economy continued its post-Covid rebound. Overall employment is now 9pc higher than it was before the pandemic.
The latest quarterly labour force survey showed there were just 112,000 people classified as unemployed in the last three months of 2022, resulting in an unemployment rate of 4.2pc – a decline from the 4.9pc recorded at the end of 2021.
“The annual decline in unemployment is coinciding with a large volume of job vacancies (+50% February 2022 vs February 2020),” said Goodbody chief economist Dermot O’Leary in a note to clients.
"Together, these trends are resulting in a labour market that in the year to Q4 2022 saw record tightness. However, the surge in labour supply in Ireland is keeping a lid on wage growth relative to international peers.”
Employment rose in most sectors. The administrative and support service activities sector saw its workforce grow by 15.2pc, with 14,500 jobs added.
This was followed by the transportation and storage sector, as well as accommodation and food service.
The largest decreases were recorded in the agriculture, forest and fishing sector, with employment numbers declining by 5.7pc. This represented a loss of around 6,100 people.
The information and communication sector also saw a decrease of 2,200 in 2022, while the professional, scientific and technical activities sector dropped by 2,600 across the year.
These industries have faced challenges in recent months as multinational companies in this space grapple with a global downturn following rapid expansion over the pandemic.
However, employment in the information and communications technology (ICT) sector rose in the final quarter of the year.
“Employment in ICT fell by 1.3pc year-on-year but was up in the quarter despite media headlines of widespread layoffs,” said Mr O’Leary.
“The annual decline may accelerate in Q1, as layoff announcements have gathered pace,” he added.