Download full report with analyst certification and important disclosures
Mar 14 2018, 12:30 GMT
As expected, the Irish labour market had another strong quarter of growth in Q4 2017, with employment rising by over 3% on the year and unemployment falling to 6.4%. Monthly data suggest no let-up in the pace of growth in 2018, with unemployment declining to 6.1% in February. The bigger picture is that employment is now just shy of the 2007 peak at 2.23m; however, with the population much larger than a decade ago and immigration flows accelerating, the labour market recovery is far from complete. Irish property prices were up strongly in January, with annual growth accelerating to 12.5%, but we still expect a moderation in annual growth to a single-digit pace in 2018 as Central Bank rules begin to constrain leverage in the mortgage market.