Aindrias Moynihan (Cork North-West, Fianna Fail)
Link to this: Individually | In context

23. To ask the Minister for Enterprise, Trade and Employment the skills gap highlighted by Irish and International companies in difficulties they are experiencing in their recruitment campaigns; and if he will make a statement on the matter. [33216/25]

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context

The Government has adopted a proactive approach to supporting Irish and international businesses across multiple crises over the last number of years. It is important to acknowledge the challenges that firms have faced, including recruiting suitable staff with the right skills.

Ireland’s labour market has experienced significant growth in recent years, and we now have more people employed in our country than ever before. According to the latest employment figures from the CSO’s Labour Force Survey, published on 22nd May 2025, total employment stood at 2.81 million. As per the CSO Statistical Release on Monthly Unemployment from early June, the seasonally adjusted national unemployment rate was 4.0% in May 2025. This is a considerable accomplishment given the challenges Ireland has faced in recent years, including Brexit, the pandemic, the war in Ukraine, global inflationary pressures, and uncertainties around tariffs and international trade. It is a testament to the hard work and remarkable resilience of Irish enterprise.

My Department is aware that it is essential that Irish and international enterprise have access to an adequate pool of high quality, adaptable and flexible talent – in particular in the context of a tightened labour market. In order to meet the demand for skills, there is close collaboration across Government, in particular between the Department of Further and Higher Education, Research, Innovation and Science, its agencies and this Department, as well as between Government, industry, and the education and training system, in order to build and retain a highly skilled workforce to serve the needs of the economy.

My Department is also working closely with the Department of Social Protection in implementing Pathways to Work, the national employment strategy, and with it the labour market activation of the unemployed, groups underrepresented in the workforce, and workers transitioning to more viable roles or sectors across the economy.

My Department operates the Government’s employment permits system which is highly responsive to areas of identified skills needs and labour shortages across the economy. The system is, by design, vacancy led and driven by the changing needs of the labour market. The employment permits system is managed through the operation of the critical skills and ineligible occupations lists which determine employments that are either in high demand or are ineligible for consideration for an employment permit.

In December 2023, following extensive engagement with industry representatives and stakeholders on the nature and extent of skills shortages, my Department announced a major expansion to the employment permits system, with 43 changes to the jobs eligible for an employment permit. This included 11 roles added to the Critical Skills Occupations List and 32 roles made eligible for a General Employment Permit. A roadmap for increasing salary thresholds was also announced. Demand for employment permits in Ireland is currently extremely high, with just under 40,000 permits issued in 2024 and 11,426 issued in Q1 2025, providing another valuable stream of skilled labour for the Irish economy.

In the context of a tight labour market, Ireland has welcomed record numbers of people from across the world to meet the demand for skills. Between 2021Q1 and 2025Q1, 217,700 non-Irish nationals (a third of whom are EU nationals) have found work in Ireland, accounting for almost two-fifths of total employment growth during this time. The majority of recent arrivals are employed in highly skilled ICT and healthcare roles, the sectors accounting for nearly 60% of all permits within Ireland. Ireland is renowned for developing and nurturing talent and is an attractive destination for internationally mobile, highly skilled workers. Today, almost 20% of Ireland’s workforce are non-Irish nationals.

The Government continues to support the economy by creating the right environment for employment creation, including employment at Irish and international companies. My Department continues to implement the actions set out in the White Paper on Enterprise, published December 2022, to enable a vibrant, resilient, sustainable and regionally-balanced economy made up of a diversified mix of leading global companies, internationally competitive Irish enterprise and thriving local businesses. Its vision is to ensure Irish-based enterprise succeeds through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods.