Employment jumps by 102,000 in year but signs rate hikes starting to bite
The Labour Force Survey showed employment levels were running at record levels of 2.65m people at the end of September.
The number of people in employment jumped by almost 102,000 in the year, defying the worst fears for the economy, official figures suggest, but the benign conditions may not last as interest rate hikes bite on businesses and households.
The Labour Force Survey from the Central Statistics Office showed employment levels were running at record levels of 2.65m people at the end of September. Employment rose in all eight regions of the State and only two of the 13 sectors that cover all private and public employment in the economy shed significant numbers of workers in the year, the figures show.
Employment grew by 4%, participation rates rose, and although creeping higher to 4.6% unemployment remained close to historically low levels, which meant that the data were "surprisingly good", despite difficulties facing some big multinational exporters based here, said Nevin Economic Research Institute co-director Tom McDonnell.
However, economic conditions will likely only worsen for exporting firms and for some domestic-facing companies as they come to terms with the costs of interest rate hikes and still-rising cost pressures, said Mr McDonnell.
Official figures and manufacturing surveys this year have pointed to a sharp fall in global export demand for pharma and chemical manufacturers, which may also account for the disappointing levels of corporation tax receipts flowing into the exchequer this year.
Construction employment levels also contracted, to 167,400 people, which may show the effects of sharply higher interest rates bearing down on commercial property projects such as new office and retail building. The Government will be hoping the shake-out will not extend to house building, experts said.
The Labour Force Survey showed the so-called industry sector, which includes multinational manufacturers, contracted to 322,000 workers, but information and communications added almost 177,000 workers, despite concerns over jobs in tech and social media giants, while agricultural employment jumped unexpectedly to almost 112,000.
