Welcome to the Moving2Ireland Jobs Market Report for July, 2019.
The seasonally adjusted number of persons unemployed was 109,700 in June 2019, down from an upwardly revised 109,400 in May and a decrease of 30,500 when compared with June 2018.
The unemployment rate for males was recorded at 4.7 percent, the same as in May 2019, and down from 6.0 percent a year earlier; while for females it edged up to 4.3 percent from 4.2 percent in May, but still well down on the 5.7 percent from June 2018. The number of males unemployed fell by 200 from the previous month to 61,400 and that of females rose by 50 to 48,300.
Ireland’s unemployment rate: June 2019
A great first half performance
There is no doubt that the first six months of 2019 have been very positive for the Irish labour market and economy more broadly. Unemployment has fallen one full percentage point since December 2018, and the country is inching closer to the holy grail of full employment.
That said, anyone familiar with any of Ireland’s many sporting collapses or heroic comebacks in recent years, knows that the game is never over at half time. This is especially relevant when predicting Ireland’s economy in Q3 and Q4 given the likelihood of Brexit and a general election taking place.
Nonetheless, there are reasons to remain optimistic, as many indicators point to continued growth in the coming months and into 2020. One thing is for certain, we will continue to keep you updated of the most relevant changes to the Irish economy as soon as they materialise.
June’s jobs announcement roundup
Unsurprisingly, one of the biggest job announcements in June came from the tech sector when social media and recruitment giant LinkedIn indicated that it planned on adding 800 jobs to its European Headquarters in Dublin. The move emphasizes that hiring in Ireland remains very strong despite Brexit and a potential slowdown in global economic growth.
The positive impact that the IDA plays in attracting employers to Ireland was articulated quite succinctly in the six month reports which emerged in June. Figures indicate that IDA Ireland secured 140 investments during the first half of 2019, with 13,500 jobs expected to be created as a result.
That represents a 19 percent increase compared to the same period of last year, with a particularly strong performance recorded in the technology, financial services and life sciences sectors. The planned creation of 1,500 jobs by Salesforce in Dublin represents the biggest single investment secured during the period.
Finally, exciting times for professionals working in the space industry as the launch of Ireland’s first ever National Space Strategy suggested that 1,000 extra jobs could be created in Ireland by companies working in this sector in the coming years. Beam me up, Scotty!
Record employment levels may result in wage growth in Ireland
If there is one trend that we feel is worthy of closer attention in Ireland in the coming months it is wage growth. As unemployment continues to fall, competition for workers looks set to increase. It is quite likely that employers will have to battle it out to attract the best and brightest, and this competition should result in better wages for workers in many of Ireland’s industries.
A recent financial project undertaken collaboratively by Central Bank of Ireland economist Reamonn Lydon and Indeed economist Pawel Adrjan indicates that record employment levels in Ireland in 2019 are putting upward pressure on wages and salaries as labour demand rises relative to supply. This project found that the number of clicks on a job posting are significantly higher in jobs where the supply of potential workers is low relative to demand.
To this end, the sectors where demand exceeds supply and potential wage increases could occur are in sectors such as IT, healthcare and finance.