UNEMPLOYMENT IS AT its highest level since 2021, according to new figures from the Central Statistics Office (CSO).

In the third quarter of 2025 unemployment rose by 0.8%, over 25,000, to 5.3% nationally.

The workforce participation rate is down around the country by 0.1% to 66.5%.

The overall employment rate for people aged 15-64 years was 74.7% in the same period this year, down from 75.3% at the same time in 2024.

This is the first year-on-year decrease in the employment rate since the 2021 in the middle of the COVID-19 pandemic.

Youth unemployment also rose significantly, from 11.5% to 14.1%.

The total number of unemployed 15-24 year olds was up 9,400 to 54,800. 

The number of people in long-term unemployment, without work for more than a year, has also risen. 

There were 7,400 more people in long-term unemployment in the third quarter of 2025. 

Speaking about the findings Chief Economist at Grant Thornton Ireland Adam Webb said the results “point to a labour market that is cooling while also struggling to draw people on the margins into work”. 

“The challenge now is not simply job creation but activation to tackle participation barriers like a lack of affordable childcare or health-related barrier.” 

Youth Work Ireland said “these figures may be a canary in the coalmine in terms of the economy”.

“The CSO figures illustrate that young people may be the first to suffer in an economic slowdown and that generally this type of unemployment is harder to combat and more long lasting.”

Head of Advocacy and Communications Michael McLoughlin said “in considering this, the impact of unemployment on young people must feature”.

“There is clearly a need to ensure that the political rhetoric of commitment to young people is now matched by concrete measures.”

As employment falls the labour force continues to grow, up 1.9% to almost three million.

The CSO also looked at the types of employment people are engaged with. They estimate that 20.6% of those in employment worked part-time, and 24.3% of these people were classified as underemployed, wanting to work more hours. 

More than 60% of people surveyed said they next work from home. 

In a a statement, statistician in the Labour Market & Earnings Division Colin Hanley explained their sampling process: “Sampled households receive introductory letters by post asking them to take part in the Labour Force Survey.”

“A person from a participating household completes the interview either by telephone or by a CSO interviewer visiting the household.”

Data from the CSO in August showed that the youth unemployment jumped by a percentage point in just one month.

Some experts have attributed the jump to an increase in business caution in the face of US President Donald Trump’s tariffs.