Unemployment fell to 7.9% last month, according to the latest figures from the Central Statistics Office, and it includes those in receipt of the Pandemic Unemployment Payment.
This compares to the Covid-adjusted rate of 8.9% in September and 20.3% in October 2020.
The traditional, seasonally adjusted rate of unemployment, stood at 135,200 people or 5.2% of the workforce in October.
This is unchanged from September and down 18,400 from the 6.3% recorded in October 2020.
The Pandemic Unemployment Payment (PUP) was closed to new applicants from July and the transition to a Jobseeker’s payment began at the end of last month.
Today’s figures show that based on the Covid-adjusted rate, unemployment was 11.1% amongst 15-24 year olds and 7.4% amongst 25-74 year olds.
Based on the traditional measure of unemployment, it was 10.4% amongst 15-24 year olds and 4.4% amongst 25-74 year olds.
The Covid-19 adjusted unemployment rate hit a peak of 31.5% last year as pandemic enforced restrictions were imposed on many businesses.
The Department of Finance had forecast in September that unemployment would average 7.2% next year and fall to 6% in 2023 as the economy continues to recover rapidly from Covid-related disruption.
Commenting on today’s figures, Jack Kennedy, economist at global job site Indeed, said the economy is maintaining its robust recovery as lockdown measures ease.
The economist said that as the level of PUP supports are eased on a phased basis, the strength of demand for labour bodes well for those looking to return to work.
He noted that the level of job postings on Indeed Ireland is 46% ahead of their pre-pandemic baseline, showing there is a clear demand from employers for workers.
“The tightening of the labour market in recent months has also been accompanied by upward wage pressure, with the CSO reporting a 3.9% increase in labour costs in its most recent quarterly update,” he said.
“Workers facing rising energy prices and other cost inflation, may look to use the demand for their services to push for further wage increases,” he added.