The latest PMI survey from S&P Global shows a decrease in employment levels in Dublin for quarter four 2025, while business activity continues to rise
10:30, 15 Jan 2026
Employment in Dublin has seen its first decrease in five years, while business activity continues to rise in the capital’s private sector.
The latest PMI survey from S&P Global has released its figures for the fourth quarter of 2025. Andrew Harker, Economics Director at S&P Global Market Intelligence, said the data showed “mixed signals” for Dublin at the end of the year.
“On the positive side, output growth quickened amid marked increases in business activity in the services and construction sectors,” he said. “In fact, the all-important service sector posted the fastest expansion since mid-2023, shrugging off the third-quarter soft-patch.
“Less positive was a first reduction in employment in five years, perhaps reflective of the more muted output requirements seen earlier in 2025. If business activity continues to rise at a similar pace in early-2026 as in the final quarter of last year, firms will likely be looking to take on extra staff again soon.”
The headline rate stood at 53.2 in Q4, up from 50.8 in Q3, marking a one-year high in the pace of expansion. The index rate continues to sit above the 50-point threshold, which indicates that activity looks set to continue expanding.
Activity across the rest of Ireland has also increased. However, at 51.9, the growth remains lower than in Dublin.
The services and construction sectors both recorded increases in Dublin both recorded notable increases in output at 55.5 and 55.1 respectively, with the service sector recovering from a contraction of 49.3 in Q3. The manufacturing sector dipped to 49.4, signalling the first time it has entered contraction territory in three quarters.
The rest of Ireland shows growth in the Services (53.3) sector. The construction (50.1) and manufacturing (51.6) sectors also recorded an expansion over the period.
New business continues to grow in Dublin, with the New Orders component increasing for the second successive quarter to 51.7. Although the rate of expansion during the period was modest, it had accelerated from Q3. The pace of increase in new business in the rest of Ireland was in line with Dublin, with the index at 51.7.
Employment saw a decrease at the end of the 2025, with a fall in staffing levels recorded for the first time since 2020. The Employment Index decreased to 49.8, from 52.3 in Q3. Other employment data also shows signs of softening.
In contrast, staffing levels across the rest of Ireland continued to rise during this quarter where the index stood at 51.7. This represents a slight increase from Q3.
This content is funded by the Local Democracy Reporting Scheme
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