Women hit hardest as female part-time employment drops 6pc amid cooling labour market

Employment in Ireland rose by only 400 in the first quarter, marking the lowest annual increase since the Covid period. The number of people notionally available to work increased by 18,000, suggesting worsening conditions for young entrants as graduates, while school leavers outpace job creation. Unemployment remained below 5%, so the jobs market has not reversed. Total hours worked per week fell slightly year on year, signaling cooling demand. Women appear to be hit hardest, with female part-time employment down 6%. The slowdown is driven largely by Information & Communication, where employment fell by 20,000 over twelve months, including a 12% year-on-year decline in computer programming and related activities. Some areas, such as transportation and storage, showed gains.

"The number of people at work in Ireland increased by just 400 in the first quarter, the CSO's Labour Force Survey shows. The number of people notionally available to work increased by 18,000 over that period, which suggests it is getting tougher for young people entering the jobs market as graduates, while the number of school leavers is outpacing the number of jobs being created."

"The official data chimes with recent warnings from the private sector that a sustained period of employment growth is over. The jobs market has not gone into reverse, however, with unemployment not exceeding 5pc. The CSO estimated total number of hours worked per week in Q1 was down slightly on last year, another signal that the jobs market is cooling."

"Dermot O'Leary, chief economist with Goodbody, said there are a number of reasons for the slowdown. From a sectoral perspective, the biggest drag came from Information & Communication, where employment fell by 20,000 over the past twelve months. Granular data show this was due to a 12pc year-on-year decline in computer programming, consultancy and related activities, he said."

""While there has been focus on the role of AI in the jobs market, this weakness could also reflect a reversal of the boom in hiring during the Covid period in particular. Employment in ICT in Ireland is still up by a third relative to its pre-Covid level.""

Read at Irish Independent