First fall in jobs growth for seven years hints at peak employment
Irish jobs growth fell for the first time in seven years in the second quarter of the year, indicating that employment may be reaching peak level.
CSO figures show that employment rose by 2%, year-on-year, in the three months to the end of June; down from 3.7% annual growth in the first quarter and 3.4% in the second quarter of last year. When adjusted for seasonal factors, employment fell by 0.9% between the first two quarters of the year and the unemployment rate rose slightly from 5.1% to 5.2%.
"While one should not get carried away with one quarter, it does suggest that a combination of slower construction growth, Brexit uncertainty and wider global trade concerns is having some impact on the very open Irish economy," said Goodbody chief economist Dermot O'Leary.
Economist Alan McQuaid said Brexit and trade fears may postpone business investment and hiring plans for the foreseeable future.
KBC Bank Ireland chief economist Austin Hughes said the scale of the slowdown looks "exaggerated". However, he expects "some slowing in employment gains as 2019 progresses on Brexit uncertainty."
