The unemployment rate returned to its pre-Covid level in May, falling from 4.8% to 4.7%, as the seasonally-adjusted number of persons unemployed declined by 2,400 to 127,500, according to the latest Central Statistics Office (CSO) figures.

Unemployment has fallen by 2.1 percentage points since last May when 6.9% of working-age people were unemployed and the Pandemic Unemployment Payment (PUP) and Employment Wage Subsidy Scheme (EWSS), which have both since closed, were in force.

The unemployment rate was 4.7% for males and 4.6% for females; 4.9% for 15-24 year-olds and 4.6% for 25-74 year-olds, with 46,700 people having exited unemployment over the past year, not counting those on PUP or availing of EWSS through their employer.

Unemployment was last lower than 4.7% in November 2006, less than a year before the 2007 financial crisis, which marked the end of the Celtic Tiger period and plunged Ireland into a years-long recession.

"The rate of unemployment fell in May to 4.7%, with fears about the rising cost of living and the economic impact of the war in Ukraine failing to dent the positive employment trend," said Jack Kennedy, economist for Indeed.

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"The recently published Q1 Labour Force Survey from the CSO tells a story of sustained employment growth, with 275,200 more people employed in Ireland compared to a year ago."

Kennedy added: "While recruitment pressure in some job categories has eased, the inflationary backdrop and skills shortage in some areas means employers in categories like tech, pharma and engineering will still be facing challenges in finding suitable candidates.

"The high rate of price inflation has prompted fears of a ‘wage price spiral’, but Indeed data to date shows wage growth continuing to lag well behind inflation.

"Analysis of advertised wages in job postings in April points to wage growth of 3.6% year-on-year, although a handful of occupations are seeing faster wage growth: food service (6.3%) and sales (5.8%).”

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