DAVY VIEW

Today’s employee payrolls data for December registered a strong recovery on the month after an unusually soft result for November. This is in keeping with our analysis of the revised unemployment rate for Q4, which suggests employment growth last year was stronger than the Q2 and Q3 results implied. Unlike in the US, sectors with above-average wages continue to drive Ireland’s employment growth. Despite risks, we remain upbeat on prospects for economic growth to remain strong into 2026.