Ireland recorded 848 business insolvencies in 2025, down slightly from the 868 cases recorded in 2024, PwC Ireland’s latest Insolvency Barometer has found.
Both last year and the year before, however, were well above the 736 insolvencies recorded in 2023, the data showed.
According to PwC, there has been an average of 204 insolvencies each quarter since the start of 2023, indicating that insolvency levels have remained relatively consistent over the past three years.
As it noted, this is a result of ‘Ireland’s recent robust economic performance and demonstrates the resilience of Irish businesses to navigate the many current macro-economic challenges’.
PwC Insolvency Barometer
The PwC Insolvency Barometer calculates that the insolvency rate for 2205 stood at 27 per 10,000 companies, which is well below the long-term average (over 21 years) of 49 per 10,000 companies. It is also far lower than the peak recorded in 2012, of 109 per 10,000 businesses.
The analysis also shows an ‘almost perfect’ statistical correlation between the Irish unemployment rate and the Irish insolvency rate per 10,000 companies, with a 1% increase in the unemployment rate in Ireland almost identically correlating to a corresponding increase in the insolvency rate.
As PwC noted, during 2025, unemployment in Ireland rose from 4% in January to 4.9% in November, which would indicate that if this trend persists into 2026, an increase in insolvency levels is likely to manifest.
On a sector-by-sector basis, meanwhile, retail insolvencies fell by 25% compared with 2024, declining to 151 cases, while hospitality insolvencies dropped by 8% to 141 cases. The latter sector remains one of the most exposed, however, with an insolvency rate above the national average – food and beverage firms continue to account for the vast majority of failures in hospitality, rather than accommodation providers.
Geographically, Dublin, Cork, and Galway accounted for 70% of all insolvencies recorded in 2025, with Dublin alone responsible for more than half (55%).
‘Low and stable levels’
“Despite geopolitical instability, inflation, interest rate variability and tariff changes in recent years, the Irish economy has continued to perform well, and is reflected in the current low and stable levels of corporate insolvencies,” commented Ken Tyrrell, business recovery partner, PwC Ireland. “In particular, despite ongoing high costs, retail and hospitality continue to show reduced levels of insolvencies.
“However, our analysis also shows that if Irish unemployment were to continue to increase, we will also likely see increasing insolvencies in the future. We cannot ignore ongoing global geopolitical risks and prevailing economic uncertainties. and we will be closely monitoring insolvency levels as 2026 unfolds. Businesses should focus on their core strategies and cost bases while actively managing their working capital and cash positions to ensure that they are financially sustainable into the future.” Read more here.
