Glimpse into Dublin's economy shows spending is up while employment is down
Despite a cooling in the job market, Dubliners are still splashing cash on leisure expenses.
The latest Dublin Economic Monitor provides a glimpse into the capital’s economy in the final quarter of 2025, where employment is down but spending is up. With an economy that “signals resilience despite signs of moderation,” it’s not all doom and gloom for Dublin city.
Chief Economist with Grant Thornton Andrew Webb stated that Dublin closed out 2025 “on a solid footing.” With strengthened business activity and consumer and tourism spending remaining healthy, he praised an impressive increase in housing delivery.
“However, the data also point to a gradual cooling in parts of the labour market and a softer FDI environment, highlighting a more balanced and sustainable phase of growth. The challenge now is to convert this resilience into longer-term momentum by maintaining competitiveness, scaling up housing delivery and supporting investment in the years ahead,” he said.
Employment figures eased to 838,000 , which represents a 0.7% decline from the previous quarter. However, this figure is actually 2.7% higher than the same time the previous year.
Although employment may be down, the report suggests some easing from the exceptionally tight conditions seen in 2024. Job vacancy data points to a pattern of stabilisation, and postings on Indeed steadied in early 2026 following a gradual dip seen throughout much of 2025. By early February, the job postings index stood 11pp below the February 2020 baseline, marking an improvement from the weaker readings recorded earlier in the year.
Although more Dublin residents may be on the job hunt, MasterCard data shows this has not impacted retail spending. Dublin’s spending hit a record high at the end of 2025, jumping nearly 8% compared to the previous year.
There was noticeable growth across a broad spectrum of categories quarter by quarter. Discretionary funding increased by 2.4% and entertaining spending expanded by 3.1%. However, Dubliners spending more on treats and nights out toward the end of 2025 makes sense, considering the celebratory Christmas and New Years period.
Those visiting Dublin from overseas also upped their expenditure, with an increase of 1.6% from the previous quarter and an annual growth of +6.3% year on year. This reflects steady growth in terms of international visitor demand.
The delivery of housing stands as one of the most urgent issues Dublin is facing and has thankfully regained momentum in Q4 2025. With completion up by 39.1% from the previous quarter, that is a 31.4% rise year on year to reach a new peak of 4,664 units.
Commencements also rebounded over the quarter, rising 134.2% to 2,162 units, but this is still 21.3% lower than the same time the previous year. For 2025 as a whole, almost 14,100 homes were completed, an increase of 18.8% from 2024.
In contrast, total commencements in 2025 (5,074 units) were substantially below the 20,712 units recorded in 2024, pointing to ongoing volatility in the development pipeline heading into 2026.
Foreign direct investment in Dublin saw a decline, with average capital investment standing at $531 million. This is down 5% from the previous quarter and 30.2% from the previous year, signalling the lowest figures on record. Average job creation also weakened to 1,662, that’s minus 21.9% from the previous year.
This is reflective of a continued divergence between steady project numbers and a reduction in project scale. As a result, average project size declined to $18.3 million in the quarter. Despite this overall softening in investment values, Dublin continued to outperform its European peers, ranking as the leading city for FDI per capita (at $462).
The S&P Global Purchasing Managers’ Index (PMI) for Dublin showed that business activity in Dublin’s private sector increased solidly during the fourth quarter of 2025. The headline Purchasing Managers’ Index (PMI) stood at 53.2, up from 50.8 in Q3, marking a one-year high in the pace of expansion.
The index continued to sit above the 50-point threshold, indicating that activity remains in expansion territory. Sectoral performance was mixed with the services (55.5) and construction (55.1) sectors both recording notable increases in output, with the former recovering from a contraction in Q3 (49.4). In contrast, the manufacturing sector dipped to 49.4, contracting for the first time in three quarters.
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