DAVY VIEW

Despite widespread fears that tariff-driven uncertainty would lead to a notably weaker Irish economy, Q2 saw a record level of employment above 2.8m for the first time. The year-on-year (yoy) increase was 2.3%, and this aligns closely with a strong increase in jobs growth that we have noted in monthly employee payrolls data. There was a welcome increase in construction employment, especially for workers mainly involved with new housing developments and renovations. Population growth was strong again over the past year, and the participation rate and third-level share of employment rose further. While the unemployment rate increased, both labour demand and supply remain strong, and Ireland’s economy remains in full employment this year.