Unemployment remains steady at 4.1%

The main unemployment rate was 4.1% in August on a seasonally adjusted basis, unchanged from July 2023 and down from a level of 4.4% twelve months ago. The seasonally adjusted number of people unemployed was 111,500 in August and was down by 4,100 in the past 12 months.

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

The unemployment rate remained at 4.1% in August. The figure shows that the labour market remains effectively at capacity while the country’s economic performance continues to impress.

To add to high employment figures, the country is benefitting from bumper, albeit volatile, tax takes, but there is still a challenge in balancing such a strong economy with the individual experiences of some households at a time of high inflation. Higher prices and increased energy and mortgage costs have affected consumer sentiment and could lead to a wage price increase spiral as employees seek better pay or move jobs to achieve it.

For employers, focussing on policies that will retain staff and make a business more attractive to would-be employees is vital. Measures such as equal and transparent pay, flexible working, good employee benefits and ensuring staff are motivated and energised, are not only the right thing to do, but have been shown to improve retention and recruitment and, in many cases, result in increased outputs.

The recent CSO Labour Force Survey showed the employment rate in Quarter 2 of this year was at 74.2%, the highest rate recorded since the series began in 1998. The numbers were boosted by increased female employment and increased female participation in the labour force. The employment rate for females aged 15-64 was at 70.5%, the highest level ever recorded.

This is a positive development and a sign that family-friendly and flexible working policies can have a real impact. The Government has introduced new initiatives and legislation in this area while many employers have adopted their own measures, which go beyond legal requirements.

Businesses that continue to provide flexible conditions and quality benefits with a focus on the wellbeing of their employees should be able to attract a balanced workforce and are likely to be able to recruit more easily in a tight labour market.

Meanwhile, traditionally male-dominated sectors should continue to innovate to increase female employee numbers. The Labour Force Survey found that the numbers of those working in the construction sector in Quarter 2, for example, rose by 2,900 to 170,200, but that figure includes 155,000 males compared to just 15,200 females.

A recent Government action plan on construction jobs highlighted the need for reforms in the area of training and education, more flexible working arrangements and promotional campaigns. In a tight labour market, other traditionally male-dominated sectors should adopt a similar approach to boost recruitment and retention.