Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I propose to take Questions Nos. 85 and 100 together.

The level of employment in Ireland reached more than 2.55 million people in the second quarter of this year, the highest level ever. Increased labour force participation has been a key factor behind the strong employment recovery. Despite some expected softening in the labour market over the next year or so, tight conditions and skills shortages for some sectors are likely to persist in the labour market. This creates challenges for all employers, including the Civil Service and wider public service. However, it is important to point out that, notwithstanding these challenges, the public service has continued to grow its staff numbers very significantly.

Between 2015 and 2021, for example, overall serving numbers in full-time equivalent terms increased from approximately 302,000 to 366,000, an increase of 64,000 or more than 20%. Over 2022 alone, the numbers employed are estimated to increase by almost 15,000, or 4%.

Pay in the public service has been governed by a system of collective agreements since the Croke Park agreement was negotiated in 2010. The Deputy is familiar with the background to this. In previous replies, I have put on record where we stand on extending the Building Momentum pay deal, which, if approved, will result in further significant pay increases of 6.5% between now and the end of next year, with 3% of that backdated to 2 February 2022. I understand that the public services committee of the Irish Congress of Trade Unions, ICTU, will convene later this week to aggregate the ballots of the different results by the unions. We have already had two results, with teaching unions confirming that they have ratified the deal. The extension will help recruitment in the public service but there is an issue, and not just in the public service. Across a range of sectors, including the private sector, attracting labour is a challenge. However, I would point to the overall numbers. According to a report that I saw in the Department recently, the number of staff at the end of quarter 2 had reached 370,000. In budget 2023, we have provided funding across the public service to increase that to more than 390,000 by the end of next year. This is coming from a base of 302,000 in 2015, so we have had a very significant expansion of the public service, but I acknowledge that we have challenges across a range of areas.

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