A SPIKE IN unemployment among young people – with roughly one in eight who are eligible to work not working – should not be ignored, experts have said. 

Data from the Central Statistics Office (CSO) published yesterday found that 12.2% of people aged between 15 and 24 years old who are eligible to work are currently unemployed.

“Consistently having in or around 40,000 young people without work in a booming economy cannot and should not be ignored by policymakers and wider society,” Dr Laura Bambrick of the Irish Congress of Trade Unions told The Journal. 

The figure excludes the vast majority of people in that age group, who are still in full-time education or training. However, it jumped by almost one percentage point in the space of a month, sparking concern about business confidence in the current climate. 

One expert said that the spike in youth unemployment could suggest that business confidence is “softening” in the face of US tariffs and general global uncertainty. Another expert said forthcoming reports will provide a clearer picture of the Irish job market.

Chief economist at Grant Thornton Andrew Webb said firms are being more cautious right now, which could create an environment where firms are less likely to fill junior roles. 

“Policymakers should take this signal seriously,” he said. “If ignored, today’s flicker could become a more persistent fault.” 

Dr Laura Bambrick of ICTU echoed Webb’s comments that policymakers need to pay attention to the figure. However, she noted that common reasons given for high unemployment rates – including the cost of minimum wage or ‘generous’ welfare payments – ignores key facts, including that youth unemployment in Ireland remains the lowest rate in the EU.

A different CSO report today shows those under 24 years old make up one of the smallest cohorts of people registered for the jobseekers’ allowance, or equivalent social welfare payments, second only to people aged between 55 and 59.

Bambrick also highlighted that the vast majority of people are still in education and that, as with all reports, yesterday’s jobs data is still subject to revision.

“It is true that an uptick in youth unemployment can be the canary in the coal mine, signalling an economic downturn,” she said, noting that the CSO’s Labour Force Survey, to be published soon, will give us a “more accurate picture” of the Irish job market.

Uncertainty remains over the Irish economy in the medium term, particularly for the future of tariffs on key sectors such as pharma and tech. 

The EU is adamant that a 15% cap on all tariffs had been agreed in the recent deal with the US, but Donald Trump has claimed that tariffs as high as 200% could be placed on targeted industries in the future. 

Despite pronouncements from Webb and business representatives, Irish firms may be screaming into the void when it comes to receiving support to combat higher costs associated with US tariffs.

Under the government’s current analysis, though some reports do not take tariffs into account, Ireland looks poised to boost its revenue and economic growth into the end of the year.