It was one of the main risks Mr Donohoe would repeatedly claim was present during tariff negotiations between the EU and US last summer.<\/p>\n
The presentations given to the minister, detailing unemployment statistics between June and August, were released through Freedom of Information laws.<\/p>\n
In August, according to the documents, job demand fell to roughly 6% and the rate of new listings began to soften.<\/p>\n
Similar levels have not been seen since the middle of 2021, between lockdowns but while restrictions were still in place.<\/p>\n
Leading economist Austin Hughes said the market is in a \u201ccooling\u201d stage, brought on following a dramatic rise in employment after the end of restrictions.<\/p>\n
He said, however, that Irish companies are likely to continue delaying hiring new staff, based on external factors out of their control.<\/p>\n
These include households feeling the squeeze and seeing a drop in disposable income, as well as ongoing uncertainty due to US tariffs<\/a> and other trade measures.<\/p>\n Mr Hughes said multinational firms will likely \u201cpause\u201d hiring because of the level of uncertainty.<\/p>\n \u201cThe situation now is it\u2019s probably more prudent to postpone something you can do tomorrow, rather than trying to get the workers in today,\u201d he said.<\/p>\n Fewer cost-of-living measures and the lack of an income tax package in the Budget have also increased unease among households, preventing Irish firms from projecting their future performance.<\/p>\n Last week\u2019s Credit Union Consumer Sentiment Index reported more households are beginning to \u201cfeel bad\u201d about spending due to the lack of supports in Budget 2026.<\/p>\n Only one in three households expect to earn a higher income next year, and the lack of tax cuts has pulled back consumer spending power.<\/p>\n The Government billed the Budget as a range of packages to protect jobs. It did so by announcing plans to reduce VAT for food-based hospitality firms to 9% from March 2026.<\/p>\n This came at the cost of an income tax package for workers and put an end to once-off payments, such as energy credits.<\/p>\n Mr Hughes said: \u201cThe issue is what happens next. The concern would be that there is further [decline] in domestic spending, as a result of the Budget taking money out of people\u2019s pockets, and more hesitation on the part of multinationals because… there is still the element of Trump waking up and thinking something different every day.<\/p>\n \u201cIt\u2019s not a climate where you accelerate hiring.\u201d<\/p>\n Mr Hughes said tariffs have contributed to general uncertainty among domestic companies and multinational firms, which the State is reliant on for high tax receipts.<\/p>\n He added: \u201cThere\u2019s increased uncertainty, evidence of slowing down in economic growth and cost pressures. This means companies are being more careful in their hiring.\u201d<\/p>\n A reduction on labour demand is \u201cno great negative\u201d, Mr Hughes said, adding that there was a period after the pandemic when the jobs market was \u201creally buoyant\u201d.<\/p>\n
![\"Labour](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/10\/trump_17a910.jpg\")
Ongoing uncertainty due to Trump’s US tariffs is an issue for companies looking to hire. (Photo by Andrew Harnik\/Getty Images)<\/p>\n