Michael McGrath (Cork South Central, Fianna Fail)
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Despite the headwinds facing the domestic economy over the past year, the labour market has proved remarkably resilient. Over 88,000 (net) jobs were added over the past four quarters, with employment reaching a record high of 2.64 million in the second quarter of 2023. As a result, almost three quarters of the working age population are now in employment – an all-time high. Perhaps the most remarkable aspect of this growth is that virtually all of it has been driven by increases in labour supply, by inward migration as well as increased participation, by females in particular.

With the unemployment rate at near record lows - averaging just over 4 per cent over the year to date - the economy is now operating at or possibly beyond full employment, with a lack of skilled labour evident in certain sectors including construction. However, overall labour demand - as indicated by job postings data from Indeed– appears to have softened in recent months and labour supply continues to be supported by inward migration. Consistent with these developments, the pace of employment growth is set to moderate throughout the rest of this year and next. My Department will publish updated labour market forecasts as part of Budget 2024next week.