Ireland Aug. unemployment rate 4.7%

Ireland Aug. unemployment rate 4.7%

Ireland's unemployment rate in August 2025 stood at 4.7%, as reported by the Central Statistics Office (CSO). This figure marks a slight increase from the previous month's rate of 4.5%, but remains below the pre-pandemic level of 5.1% [1].

The latest data from the CSO indicates that the labor market in Ireland continues to recover, albeit at a slower pace. The services sector, which has been a significant driver of employment growth, saw a slowdown in August. The AIB Services Purchasing Managers Index (PMI) showed a reading of 50.6, down from July's 50.9, indicating a contraction in business activity [2].

Despite the overall slowdown, certain sub-sectors within the services industry performed better. Technology, media, and telecoms, as well as business services, registered growth. Conversely, transport, tourism, and leisure sectors experienced a sixth consecutive month of decline, with the fastest rate since June. This decline is attributed to lower headcounts due to natural attrition, higher costs, and capacity alignment with current workloads [2].

The Irish economy's resilience is evident in the continued growth of the retail sector. Retail sales rose by 0.8% in July 2025, while average weekly earnings increased by 5.3% in the second quarter of 2025 [1]. These positive indicators suggest that consumer spending and wage growth are supporting the economy.

However, the current account surplus narrowed significantly in the second quarter of 2025. Ireland's current account surplus fell to EUR 19.5 billion from EUR 35.2 billion in the corresponding period of the previous year. This narrowing was primarily driven by a widening primary income deficit and a decrease in the services surplus [1].

In conclusion, Ireland's August unemployment rate of 4.7% reflects a mixed economic picture. While the services sector faces headwinds, other sectors such as retail and technology continue to drive growth. The narrowing current account surplus indicates a need for continued monitoring of external factors influencing the economy.

References:
[1] https://tradingeconomics.com/ireland/current-account
[2] https://www.irishexaminer.com/business/economy/arid-41698190.html