Business in Ireland 2025 - Labour Market and Social Sustainability

Labour supply is important for enterprises. The demographics of Ireland is changing, with fewer births and an ageing population, which could have implications for future labour supply. The numbers employed in the labour force reached record levels in 2025 (2.8 million people in Q4 2025, up 19% from 2.4 million people in Q4 2019) and is projected to grow further in coming years, with older people and non-Irish nationals likely to represent an increasing proportion of the workforce (based on CSO population and labour force projections). Interestingly, some sectors of the enterprise economy are more reliant on non-national labour supply than others.

• Total employment (employees and self-employed) was 2.8 million in Q4 2025, of which the main sectors were Human Health and Social Work Activities (0.39 million or 13.9%) and Industry (excluding construction) (0.35 million or 12.5%).
• Compared with the EU, Ireland's labour market has a different sectoral profile, most notably in the Information & Communication sector which, in 2024, accounted for 6.7% of employments in Ireland compared to 3.5% across the EU.
• The number of employees increased by 355,332 between 2019 and 2024, with non-Irish nationals contributing 61.4% or 218,261 of the growth.
• In 2024, non-Irish nationals accounted for 27.5% of total employees and represented a significant proportion of employees in the Administrative & Support Services (45.6%), Accommodation & Food Services (45.1%), and Information & Communication (41.4%) sectors.
• After Irish nationals (72.5%), the highest proportion of employees in 2024 were for those with Polish (3.2%), Indian (3.1%), and United Kingdom (2.7%) nationalities. Employees with Indian nationality represented 8.8% of employees in the Information & Communication sector and 6.9% of employees in the Human Health & Social Work Activities sector.
• For Irish nationals, roughly a quarter (26.4%) of employees in 2024 were in the 15-24 years and 60 years and over age groups, just over double the rate (13.0%) for non-Irish nationals. The median age of Irish nationals in employment was 41 years, compared to 37 years for non-Irish nationals.
• The number of individuals aged 55 years and over as a proportion of the labour force doubled between Q4 2000 (10.2% or 0.19 million people) and Q4 2025 (20.2% or 0.6 million people).
• The employment rate (the share of persons in the total population of persons aged 15-64 years who are in employment) in Ireland in 2025 was 74.6%, the tenth highest in the EU, and above the EU average of 71.0%. The employment rate for women was 70.9% (15th in the EU), compared to 78.4% for men (eighth in the EU).
• CSO population and labour force projections indicate that, under different scenarios, the labour force in Ireland could grow by between 337,000 and 610,000 people between 2022 and 2037, with migration and participation rates by sex and age likely to be factors in any increase.

Numbers employed in the labour force reached record levels of 2.8 million people in 2025

Data on employment is reported in the CSO, Labour Force Survey releases.

An estimated 2,833,100 people were in employment (employees and self-employed) in Q4 2025, an increase of 455,300, or 19.1%, compared with Q4 2019.

The highest number of employments were in the Human Health & Social Work Activities sector, which accounted for 13.9% of all employments in Q4 2025, followed by Industry (excluding Construction) (12.5%) and Wholesale & Retail Trade, Repair of Motor Vehicles & Motorcycles (11.4%).

Over the period Q4 2019 to Q4 2025 the number of persons in employment increased by 19.1%. Human Health & Social Work Activities was the sector with the largest increase in employment over that period, increasing by 95,100 people (+31.9%), followed by Industry, excluding construction (+22.9% or 66,000), Education (+34.3% or 66,000 people) and Construction (+29.7% or 43,900 people).

In percentage terms, the Professional, Scientific & Technical Activities sector (+33.3% or 47,400 people) and the Information & Communication sector (+32.3% or 41,600 people) had the largest increases in employment between Q4 2019 and Q4 2025. See Figure 2.1 and Table 2.1.

Compared with the EU, Ireland's labour market has a different sectoral profile, most notably in the Information & Communication sector which, in 2024, accounted for 6.7% of employments in Ireland compared to 3.5% across the EU. See Table 2.2.

The number of employees increased by 355,332 between 2019 and 2024, with non-Irish nationals contributing 61.4% of the growth

Data on Employment and Nationality are reported in the CSO, Distribution of Earnings by Nationality releases.

The number of employees increased by 355,332 between 2019 and 2024, with non-Irish nationals contributing 61.4% or 218,261 of the growth.

In 2024, non-Irish nationals accounted for 27.5% of total employees and represented a significant proportion of employees in the Administrative & Support Services (45.6%), Accommodation & Food Services (45.1%), and Information & Communication (41.4%) sectors. See Table 2.3.

After Irish nationals (72.5%), the highest proportion of employees in 2024 were for those with Polish (3.2%), Indian (3.1%), and United Kingdom (2.7%) nationalities.

Employees with Polish nationality represented 6.1% of all employments in Industry (excluding Construction) and 4.8% of employments in the Transport & Storage sector. Employees with Indian nationality represented 8.8% of employees in the Information & Communication sector and 6.9% of employees in the Human Health & Social Work Activities sector. See Table 2.4.

Of all employments held by Indian nationals, just over three in ten (32.2%) were in the Human Health & Social Work Activities sector. See Table 2.5.

Note: References to employees in this release mainly relate to employments (employees only, not self-employed) in NACE sectors B-S. Some individuals may have more than one employment, and secondary employments earning at least €4,000 per annum are included in the analysis. See Background Notes for more details.

The median age of Irish national employees in 2024 was 41 years, compared to 37 years for non-Irish nationals

Data on Employment and Nationality are reported in the CSO, Distribution of Earnings by Nationality releases.

For Irish nationals, roughly a quarter (26.4%) of employees in 2024 were in the 15-24 years and 60 years and over age groups, just over double the rate (13.0%) for non-Irish nationals. The median age of Irish national employees was 41 years, compared to 37 years for non-Irish nationals. See Figure 2.2 and Table 2.6.

Individuals aged 55 years and over as a proportion of the labour force doubled over past 25 years

Data on employment is reported in the CSO, Labour Force Survey releases.

The number of individuals aged 55 years and over as a proportion of the labour force doubled between Q4 2000 (10.2% or 0.19 million people) and Q4 2025 (20.2% or 0.6 million people).

The 15-24 years age group is the only age group in which numbers in the labour force fell in absolute terms between Q4 2020 and Q4 2025, down 53,600 people.

Both the 15-24 years (down from 22.2% to 12.1%) and 25-34 years (down from 26.6% to 20.1%) age groups fell as a proportion of the total labour force between Q4 2020 and Q4 2025. See Figure 2.3 and Table 2.7.

Ireland’s employment rate for women, at 70.9%, was the 15th highest in the EU in 2025, above the EU average of 66.6%

Looking at how we compare to other EU member states, in 2025, Ireland, at 74.6%, had the tenth highest employment rate - the share of persons in the total population of persons aged 15-64 years who are in employment - compared to an EU average of 71.0%. See Figure 2.4.

Ireland’s employment rate for women was 70.9% in 2025, compared to 78.4% for men. The employment rate for women was the 15th highest in the EU in 2025, above the EU average of 66.6%, and compared to an employment rate for women of 78.9% in the Netherlands, the EU country with the highest employment rate for women. See Table 2.8.

Labour force projected to increase alongside population increases

Data on labour force growth is reported in the CSO, Population and Labour Force Projections releases.

The number of people in the labour force is influenced by changes in the size of the working age population as well as changes in participation.

The Population and Labour Force Projections release looks at three different potential population growth scenarios over the time period of 2023-2057. It is based on the 2022 Census. The scenarios encompass forecasted births, deaths and net migration to Ireland over the period.

Under the three different scenarios the population by 2057 will reach 7.005 million, 6.446 million or 5.734 million persons respectively, based on these scenarios (which are quite unlikely to turn out exactly correct). The key change in each of these scenarios is the net migration per annum. Assumptions regarding fertility and mortality remain constant across the three scenarios. See Table 2.9.

For each of the three scenarios there appears to be a change from natural increase (i.e. more births than deaths within the population) in the population to a natural decrease (i.e. more deaths than births) in the population by the 2040's. The timing of this change depends on the scenario chosen.

The labour force is projected to increase under all three potential population growth scenarios. The amount of growth depends on the scenario chosen.

Under the three scenarios considered the labour force is projected to increase, between 2022 and 2037, by just over 610,400 (22.6%), by just over 485,500 (18.0%), or by 337,200 (12.5%) persons. See Figure 2.5 and Table 2.10.