PerchPulse - Ireland Market Update September 2022 

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

A big feathery welcome!

Hey there! Welcome to PerchPeek’s September 2022 Ireland Market Update! As experts in moving people between locations, we keep as up-to-date as possible on international market trends and factors influencing HR leaders, their teams, and their employees, and we've brought this insight into a monthly newsletter. If you’d like to get this newsletter directly into your inbox every month, simply sign up for it here. We hope you enjoy reading! 

Fly-by summary:

• Inflation has reached its highest level since the 1980s.
• Ireland has seen its largest annual population increase since 2008.
• While the cost of living remains high, the government is set to announce energy bill grants for businesses and consumers.
• The number of those employed in Ireland has reached a new high. 

Talent & Migration

Employment Reaches New High as Labour Market Recovers

In Ireland, recent figures show the number of those employed has risen to a new high of 2.55 million. Plus, the current unemployment rate (4.3% in August 2022) is lower than the pre-pandemic 5.0% recorded in August 2019. The more positive news comes with a recent Labour Force Survey (LFS), showing continued recovery from the pandemic; more than 205,000 jobs have been created so far in the year leading up to Q2 2022, with 40,000 in the construction sector. 

This success can be attributed to the government’s Economic Recovery Plan, which detailed efforts to help workers and businesses during the pandemic – from a successful rollout of the vaccination program to a focus on driving labour market recovery. 

Ireland Modernizing Employment Permit System

In terms of migration, Ireland has seen its most significant annual population increase since 2008. Bolstering this increase were more than 120,000 immigrants, including nearly 30,000 Ukrainians. 

The government of Ireland is also implementing a new law in an effort to streamline the Employment Permit system, allowing the country to better compete for global talent while filling labour market gaps, supporting local enterprises, encouraging foreign direct investment, and protecting the rights of workers in the State. 

With this new law, employers will be able to recruit individuals who may need additional upskilling and training, and more opportunities will be available to employers who require seasonal workers. Many Irish companies are taking advantage of this new law to hire people in Ireland. 

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Housing & Cost of Living

Spending Declines as Property Prices Peak Since 2007 

While Ireland’s estimated annual inflation rate is forecast to have declined slightly (to 8.9%), global inflation continues to strain wallets and spending worldwide. Energy remains the main contributor to inflation and is rising at an annual rate of nearly 40%. Utility firm Electric Ireland announced residential electricity bills will be nearly 27% higher and gas bills 36.5% higher from Oct. 1st of this year.

There’s good news, though! Ireland is announcing energy bill grants and other support measures totaling more than 6.5 billion euros in their 2023 budget on Sept. 27.

Prospective renters and buyers in Ireland say price rises hamper their ability to afford to buy or rent new homes. And the Economic and Social Research Institute has found the number of 25 to 34 year-olds living independently and owning their own homes has fallen dramatically from 60% in 2004 to just 27% in 2019.

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By the numbers…

• Asking prices on homes are up 11% year-on-year, according to Myhome.ie
• The median price paid for a property in the 12 months leading to the end of June was €290,000. 
• The highest price growth was in Dublin city, where prices have increased nearly 14%, while Dún Laoghaire-Rathdown saw a rise of 10.1%.

For a silver lining here, Ireland is still less expensive compared to other countries; compared to the US, the cost of living in Ireland is about 8% lower, and rent is nearly 11% lower. 

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Business & Economy 

Irish GDP Grows, Though Recession Still Expected for End of Year

The Irish economy has been resilient through the pandemic, with its gross national product growing by over 2%. Figures released in August showed Ireland’s finances emerged from a Covid-era deficit into a surplus of 6 billion euros. 

However, as in the rest of Europe, Irish citizens and businesses are facing pressures with rising prices and inflation reaching its highest level since the 1980s. While retail sales are falling, substantial employment, tax returns, and service sector data suggest parts of the economy are coping with this inflation. Ireland boasts a significant presence of major tech companies in the world, including:

• Apple
• Google
• Microsoft
• Dell
• Intel
• Twitter
• Meta
• Amazon
• HubSpot
• PayPal

With nearly 1,000 tech companies, ranging from global superpowers to small start-ups, many have been attracted to Ireland for its low 12.5% corporate tax rate and this English-speaking country’s time zone and friendly work environment.

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Conclusion

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Despite worldwide inflation and increases in rent, energy, and other costs, the Irish government has stepped up to help both consumers and businesses. With energy bill grants and improved employment permits, a sense of strength and community remains. Plus, this is an opportunity for you to attract and retain excellent talent, adding fresh momentum to your company, even during these challenging times. Plus, the country still remains a hot spot for tech firms; great sign moving forward! 

‍Thanks for reading! See you next month!

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