The country's unemployment rose to 4.9% in December from 4.8% a month earlier, new figures from the Central Statistics Office showed today.
Unemployment fell to a near record low of 4.1% early last year after the economy rebounded sharply from the Covid-19 pandemic but increased gradually during 2023 as economic growth moderated.
Today's CSO figures show that the jobless rate for men stood at 5.1% in December from the revised rate of 5% in November, and up from a revised rate of 4.3% in December 2022.
The jobless rate for women was unchanged at 4.6% in December from the November 2023 rate, while it was up from a rate of 4.5% in December 2022.
Meanwhile, the youth unemployment rate rose to 13.4% in December from a revised rate of 13% in November, the CSO added.
Today's CSO figures show that the seasonally adjusted number of people unemployed stood at 136,300 in December, compared with 134,600 in November.
There was an increase of 19,200 in the seasonally adjusted number of people unemployed in December 2023 on the same time last year, it added.
Pawel Adrjan, director of economic research for Europe and Asia at global job site Indeed, said there is cause for optimism on the employment front as we look ahead to 2024.
Pawel Adrjan said the Central Bank recently predicted that unemployment is set to rise slightly this year but remain below 5% up to 2026, despite warnings that the economy is shifting to a slower growth path amid higher interest rates and a slowdown in global economic activity.
He said that unemployment has risen slowly but steadily in recent months. It was at 4.4% in July but stretched up to 4.8% in November and is now at 4.9%.
"Indeed had indicated this was likely to be the case as job postings continued to fall. In February 2022 job postings were recorded at a peak of 65% above pre-pandemic levels and remained high throughout that year, but 2023 was the year of a gradual decline," the economist said.
"Job postings fell to 26% above pre-pandemic levels at the end of October and were down to 16% at the end of December 2023, on a seasonally adjusted basis, suggesting continued cooling of the labour market," he added.
"The trajectory of the labour market in the initial months of 2024 will serve as a pivotal predictor for the year ahead. Despite some remaining labour availability , sectors continue to grapple with labour shortages, and if participation levels in Ireland remain high, it could potentially fuel wage hikes and consequent inflationary pressures if costs are passed on to consumers," Mr Adrjan added.
