According to PwC’s Insolvency Barometer, insolvency levels in the Republic of Ireland have remained consistent and well below historical averages over the past three years.

PwC’s analysis finds that last year’s insolvency rate was 27 per 10,000 companies, which it says is well below the 21-year average of 49 per 10,000 businesses. The peak figure of 109 per 10,000 companies was recorded in 2012.

The report shows that insolvency activity has averaged 204 cases per quarter over the past three years, reflecting what it describes as the resilience of Irish businesses.

Its Insolvency Barometer shows that 848 business failed in 2025, showing a slight decrease from 868 in 2024, but higher than the 736 recorded in 2023.

PwC’s report explained that the unemployment rate increased from 4% in January to 4.9% in November, adding that, if this trend persists during 2026, it expects to see an increase in insolvency levels during the coming years.

There’s an “almost perfect” statistical correlation between the unemployment rate and the insolvency rate per 10,000 companies. It calculates that every increase of one percentage point in the unemployment rate leads to an additional 245 insolvencies.

Ken Tyrrell, Business Recovery partner at PwC Ireland, stated, “It is good news to see that insolvency levels in the Republic of Ireland have remained consistent at relatively low levels over the last three years which largely reflects robust economic performance.

“However, our analysis also shows that if Irish unemployment were to continue to increase, we will also likely see increasing insolvencies in the future,” he added.

Geographically, Dublin, Cork, and Galway account for nearly 70% of all insolvencies, with Dublin alone responsible for over half. This concentration reflects the higher density of enterprises in urban centres and their exposure to economic fluctuations.

The hospitality industry recorded 141 insolvencies in 2025 – slightly below the 154 in 2024. PwC points out, however, that the sector has an above-average insolvency rate of 68 per 10,000 businesses, compared with retail’s 23 per 10,000 businesses.

 

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.