PerchPulse - Ireland Market Update August 2022  

The latest and most relevant info on talent, immigration, business, and cost of living in Ireland, to help HR people stay close to events and support their people strategy.

A big feathery welcome!

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Hey there! Welcome to PerchPeek's August 2022 Ireland Market Update! PerchPeek’s relocation specialists are here to offer insight into top mobility challenges and industry trends. We’re always keeping up with the latest international market trends that matter most to HR leaders, their teams, and their employees, helping them move and support their employees globally. Each month, we curate a monthly newsletter that includes our research and insights to better assist as many HR professionals as possible.

Fly-by Summary!

• Annual job metrics in Ireland have significantly increased, indicating that the economy is recovering from the shock of the pandemic despite the Russian invasion of Ukraine.

• The Irish government has made thoughtful changes to its immigration rules to support Ukrainian refugees.

• The skyrocketing cost of living in Ireland could impact the retainment of industry talent; HR teams should be wary of this critical factor.

• Like all other major economies, the Irish economy is facing "stagflation," which includes both rising inflation and economic stagnation. The government is putting forward financial measures to ease this pressure.

‍Talent & Migration: Measures of Economic Growth

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Ireland has witnessed a massive influx of talent, being one of the fastest growing economies in the European Union. Opportunities abound in the tech sector as Ireland is home to tech giants such as Apple and Facebook, among other multinational companies. This has caused a migration of skilled labour to Ireland.

Similarly, hospitality and tourism industries require skilled and casual workers due to Ireland's rising popularity as a vacation destination.  

Numerous sectors have been affected by staff shortages as the unemployment data showed a slight increase of about 0.1% in the Irish economic outlook. A recent study  found that 30% of businesses in Ireland consider staffing to be their biggest challenge (topped only by the 40% who consider inflation the highest risk). Affected industries include: 

• Business and Finance 
• Engineering
• Tech / IT 
• Healthcare 
• Hospitality 
• Logistics 

The Irish government has increased wages and intervened in the country's migration process in recent months to ease staff shortages and the negative impact of the Ukraine war. They’ve implemented visa-free travel for Ukrainian refugees; a working permit is still required in Ireland before employment. Increased wages and relaxed migration rules are expected to boost the influx of talent to the country. 

Can companies utilise this window of opportunity? The answer is definitely yes. There is now an increased ability to take advantage of foreign talent. Skilled workers from Ukraine would be the first considered, while other non-EU immigrants could be considered after visa and employment permits have been issued. 

‍Housing & Cost of Living: Inflation Hurting Irish Pockets

Compared with other EU countries, Ireland is expensive to live in…but inflation has added fuel to the raging fire. Supply-side inflation caused by the Russian invasion of Ukraine and China-Taiwan tensions has caused a significant spike in energy and food prices.

The rental surge is continuing in Ireland. The prices of properties in Dublin are almost 100% higher than what you might pay in other Irish counties and the EU zone. 

Here is an estimate of what prices in Dublin look like compared to other parts of Ireland:

• Shared room in Ireland (outside Dublin) – 500-900 EUR
• Shared space in Dublin – 800-1200 EUR
• Private apartment in Ireland – 1100-2500 EUR
• Private apartment in Dublin - 1500-3000 EUR
• Luxury home in Ireland – 3000-4000+ EUR

According to recent statistics, the cost of living in Ireland is 40% higher than in other European nations. Food and non-alcoholic beverage prices are up 19% and gas is up by 15%. The country has also seen a whopping 72% increase in healthcare services compared to the average EU rate.

Housing combined with the cost of living take up a significantly higher percentage of employees' wages in Ireland than in other countries.

The government plans to reduce inflation's impact on its citizens through various aids and packages targeting the rising cost of living and helping Ukrainian refugees. A total of 11.2 billion euros has been earmarked, with 6.7 billion euros targeted toward inflation reduction in Ireland and 4.5 billion euros for refugees. 

Business & Economy: Recession Fears Amid Slowed Growth

While the Irish economy might not technically be in recession, there are fears of an economic slowdown and rising inflation hitting double figures of around 10% in the third quarter of 2022, as predicted by the Central Bank. 

Similarly, there is a drop in the Consumer and Business Confidence Index of about 8.5 points month-on-month. Rising gas prices, supply bottlenecks, and the increased cost of living account for the drop in business and consumer confidence. All these imply an upcoming period of low productivity and consumer confidence is on the way and may start to have an impact on businesses.

Conclusion ‍

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Undoubtedly, this is a challenging time for the Irish government, stakeholders, businesses, and most importantly, employees. Showing support to workers with regards to rising costs of living at this difficult time will be essential to retaining them. Staying close to the emotions of your teams in Q3 of 2022 would be the best and most productive step any business can take, aiming to inspire loyalty and gratitude. 

The good news is the Irish government is actively tackling inflation and supporting refugees. Therefore, there is an opportunity to use these avenues to attract and retain some great European talent and add fresh impetus to your company during these challenging times.

Thanks for reading! See you next month.

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