Non-Irish citizens make up one-in-five in employment

Non-Irish citizens now make up one-in-five people in employment in the state, according to the Economic and Social Research Institute.

In each of the last four years, between 30,000 - 40,000 employment permits have been issued or renewed to non-EEA workers following several policy changes that made it easier for Irish employers to recruit them.

There is a continued shortage of labour in Ireland's health, social care, construction, ICT, agri-food, and transportation sectors, among others, according to the European Migration Network (EMN) report.

The EMN found that the number of sponsoring companies and economic sectors recruiting through the employment permit system has grown and diversified; with more employers now relying on non-EEA recruitment across more roles and sectors.

Critical Skills Employment Permits are issued to workers who are highly skilled or in particularly high demand, while General Employment Permits may be issued in most occupations following a labour market needs test.

Despite the predominance of skills shortages, researchers found that the issuing of General Employment Permits had "especially increased" for the first time since 2016, compared to Critical Skills Permits.

While the main sponsoring sectors - Health and social work as well as ICT - still dominate, the EMN found that historically smaller sectors such as accommodation and food services and construction had increased their recruitment of non-EEA workers.

Reducing active labour force

As part of the study, researchers examined what led to labour shortages in the first instance.

Like other EU countries, an aging population is reducing the active labour force while simultaneously raising demand for health and care services.

Demographic challenges are further exacerbated by the emigration of working age residents from Ireland, according to the report.

It says the number of Irish and non-Irish emigrants leaving the State increased by 37% between 2020 and 2024, the majority of whom were aged between 15 - 44 years of age.

Another factor is that Irish sectors experiencing worker shortages are frequently associated with poorer health outcomes, more difficult working conditions, or lower pay.

This can deter local workers from entering or remaining in these sectors, whereas migrants often become overrepresented - the Covid-19 pandemic "further entrenched" this effect, it says.

One of the most significant policy changes to meet the demand of labour shortages was the Department of Enterprise Trade and Employment's decision to broaden the list of eligible occupations in 2021 and again in 2023.

This opened the employment permit system to roles that were previously excluded from foreign recruitment.

It cites healthcare assistants in 2021 as an example of a role which has since become key to meeting skills shortages in the healthcare sector.

Then in 2024, the Employment Permits Act further modernised and expanded the system, digitalising most processes and establishing an additional recruitment pathway through the Seasonal Employment Permit.

The Employment Permits Act introduced additional safeguards, most notably a change of employer provision, intended to protect workers across all skill levels.

However, the research found that many migrants remain unaware of the availability of these provisions or simply do not recognise where they find themselves in situations of exploitation.

Employment condidtions

NGOs have reported that breaches of employment conditions are particularly common among General Employment Permit holders and in newer occupations within the system, including meat processing operatives, healthcare assistants and home carers.

Migrants face difficulties in having non-EU qualifications recognised, especially in regulated professions such as doctors, nurses, teachers, and engineers.

Beyond the employment permit system itself, a range of related policies shape migrants’ engagement with the labour market.

These include improving access to family reunification, reducing visa processing times, faster and more affordable qualification recognition, and improvements in job quality and pay.

Author of the report, Ada Sophia Hahn has said the strong uptake in employment permits shows "the growing importance" of non-EEA migrant workers in meeting Ireland’s demand for labour across healthcare, construction and ICT services.

"Ensuring that the employment permit system is effective and fair matters not only to employers and migrant workers, but also to Irish society at large as it could impact the delivery of public services.

"Consistently low retention rates would be a concern, as it could undermine the effectiveness of the employment permit system," she said.