The latest Dublin Economic Monitor figures showcase both employment and unemployment are in the rise, signalling the number of people seeking work is outpacing new job creation
13:30, 04 Dec 2025
Dublin's labour market is experiencing an unusual discrepancy as both employment and unemployment have risen.
Employment levels grew to 844,100 across the Dublin economy in Q3 2025, continuing an upward trend year-on-year. However, the unemployment rate simultaneously rose to 5.2%, surpassing the 5% threshold for the first time since 2022.
This contradiction points to an expanding labour force, where the number of people seeking work is outpacing new job creation. Further signalling a cooling in hiring activity, job postings on Indeed fell to their weakest level since 2021.
The latest Dublin Economic Monitor figures also show the capital's private sector continued to expand in Q3, but only marginally, marking the weakest growth since late 2022. The services sector, which is the biggest part of Dublin's economy, actually shrank for the first time since early 2021.
Dublin's housing supply indicators also weakened, reflecting rising construction costs and tighter finance conditions across the region. The volume of new completions fell by over 17% quarter-on-quarter, and commencements saw a steep 85% decline year-on-year to just 923 units.
On the other hand, retail spending continued to rise, reaching a new peak index value of 150.1 based on MasterCard data. This upsurge in consumer spending is supported by the continued strength in the labour market and steady income gains.
Foreign Direct Investment (FDI) into Dublin remained subdued, with average capital investment standing at $556 million, hitting the lowest quarterly inflow since the series began in 2019. The average size of investment projects also declined, reinforcing that while Dublin attracts investment, individual project scales are becoming smaller.
Despite this moderation, Dublin continues to outperform its European rivals in attracting foreign capital. Dublin maintains its ranking as the top European city for FDI per capita.
Chief Economist Andrew Webb with Grant Thornton noted that while the economy shows resilience, the pace of activity is clearly moderating. He stressed that sustaining confidence will depend on steady progress in housing, infrastructure, and competitiveness in the coming quarter.
“In the latest Monitor, Dublin’s economy continues to show resilience, even as the pace of activity shows signs of moderating. Employment remains strong and consumers continue to spend, yet the rise in unemployment and softening vacancy levels point to a labour market that is beginning to rebalance.
“The sharp drop in housing commencements is a reminder that delivery challenges remain. Dublin is entering a more measured phase of expansion, where sustaining confidence will depend on steady progress in housing, infrastructure and competitiveness.”
Key highlights from the Q3 Dublin Economic Monitor:
- Dublin employment climbed to a record 844,100 (SA) in Q3 2025, but the pace of expansion eased in parallel with a rise in the unemployment rate to 5.2% (SA)
- Q3 retail spending in Dublin increased by 1.1% QoQ to reach a record index value of 150.1.
- Business activity in Dublin’s private sector grew modestly, with output rising in manufacturing and construction, while the services sector slipped into contraction for the first time since early 2021.
- Housing supply weakened sharply in Q3 2025, with commencements down 85% YoY to 923 units (non-SA) and completions falling 13.2% YoY to 3,353 units (SA).
- Occupancy rates in the Dublin hotel market remained resilient through late summer and into early autumn, climbing to a rate of 93% in September.
- Passenger numbers at Dublin Airport remained strong in Q3, increasing by 0.8% QoQ to reach a new high of 9.38 million passengers (SA).
This content is funded by the Local Democracy Reporting Scheme
Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
For all the latest news from Dublin and surrounding areas visit our homepage.