The Irish labour market continues to see high employment and participation rates. According to the most recent data from the Central Statistics Office, the seasonally adjusted unemployment rate was 4.9 percent in May 2026, and the youth unemployment rate stood at 9.9 percent.
The Department of Finance published an Economic Insights analysis on the labour market effects of AI. Preliminary data suggested AI may have influenced employment patterns in Ireland, as employment growth in ‘at risk’ sectors was weaker than that in less exposed sectors over the past two years.
Last May, the Department of Finance also published “Artificial Intelligence: Friend or Foe?” which found younger workers were at higher risk of displacement than older workers. Finance, ICT, and Professional Service sectors were found to be at increased risk.
However, Department of Finance analysis states that it may be premature to attribute these employment adjustments solely to increased AI adoption in Ireland, as it is difficult to separate out its impact from broader economic and geopolitical factors. In this respect the current international economic uncertainty is likely to be playing a role in employer's recruitment decisions including with respect to graduate recruitment. In its most recent quarterly bulletin, the Central Bank forecast unemployment to remain stable this year.
My Department will continue to monitor the labour market and seek to identify any emerging trends or changes in the labour market's composition.