Monaghan is the largest urban centre in County Monaghan acting as an important commercial and services centre for the county. Providing a gateway to the North West and Northern Ireland, Monaghan is strategically located at the intersection of the N2 and N54, linking Dublin to the North-West and Belfast to the Midlands respectively. The town is also located along the east-west corridor linking Dundalk and Newry to Sligo. Recent upgrade works to the national road network provides improved access times to airports and ports along the eastern seaboard. The town is designated a hub town for growth under the National Spatial Strategy and performs an important employment, retailing and administrative function, serving the economic needs of a large rural hinterland, which extends into Northern Ireland and adjoining counties.

Monaghan town has a large number of traditional industries which have provided constant employment, notably in the engineering, furniture and agri-food industries. The major employers in the town are Kingspan Century Homes and IJM Timber Engineering Ltd., manufacturers of pre-fabricated timber homes and the furniture manufacturers, John E. Coyle and McNally & Finlay.  Other major employers outside the town boundary but providing direct employment to the town include Monaghan Mushrooms and Combi Lift Ltd. These industries provide employment for a substantial proportion of the working population of Monaghan town.

According to the 2011 Census, the population of Monaghan totalled 60,495 persons, having increased by 8% since 2006. Monaghan Town has an urban population of 7,452 people.