Unemployment rate falls despite War and Inflation

The main unemployment rate was 4.8% in April on a seasonally adjusted basis, down from an adjusted 5.1% in March and down from a level of 7.5% twelve months ago. The seasonally adjusted number of people unemployed fell by 6,300 in April, and by 56,800 in the past 12 months.

Unemployment Rate

Jack Kennedy, an economist at global job site Indeed, comments on the latest CSO data:

“The unemployment rate was lower in April at 4.8% despite the economy being in an uncertain period given the potential impact of the war in Ukraine, and the escalating concerns about inflation and the cost of living.

The rate of inflation rose to 7.3% the last month1 with energy and food costs being two areas of particular pressure. Whilst this hasn’t yet had any noticeable impact on the strength of the labour market in Ireland, it may impact economic confidence over time and could stoke wage expectations.

However recent research indicates that employee satisfaction is about more than headline rates of pay, with access to flexible working and a better work/life balance key features that many employees are seeking.

A survey conducted by Indeed and Kelloggs2 found that 40% of workers would be unlikely to take a job with a company that did not have a flexible or hybrid working policy in place. 93% of people said that they would like to work for an employer who supports and encourages a greater work-life balance.

Despite the labour market uncertainty, employers are still actively hiring, with the level of Irish job postings on Indeed up 52% on 29 April 2022, compared to 1 February 2020 (Fig 1). Against this competitive backdrop for talent, employers who demonstrate flexibility and offer compelling benefits over and above the basic remuneration package will be best placed to succeed.