Is the housing crisis now starting to threaten jobs growth?
Smart Money: Employees on average wages can’t afford to buy or rent, so is the jobs boom sustainable?
Daft recently calculated that the average supply of monthly rental properties is only a third of estimated demand. File photograph: Bryan O’Brien
City-centre rents and house prices are increasingly out of reach for those on average wages. As well as causing big problems for those directly affected, particularly younger employees and those returning to Ireland or coming to live here, this is also having a wider impact on the jobs market. But recent data suggests that job numbers continued to rise quickly in the capital over the past year. How is this happening, when those taking up many of the jobs can’t afford to live anywhere near the city centre? Here are the three key points.
1. Jobs growth is starting to slow
The Irish jobs market has performed remarkably in recent years, with total employment now exceeding the pre-crash peak and a net gain of 66,700 jobs over the past year, or not far off 1,300 a week. However there are signs that growth is slowing, with the quarterly rate of increase slipping each quarter from the start of the year.In the last quarter the increase was 10,700, or just over 800 a week. It is the slowest quarterly rate of increase since nearly 2017.