On average, people in Ireland are working less since the Covid-19 pandemic
The report
shows that Ireland's labour market has had a 'remarkable' recovery from the Covid-19 pandemic and is actually in a stronger position than it was before, with employment at record highs in 2024.
This has been driven by inward migration and increased participation in the labour market, with the increased participation largely coming from groups who traditionally have a lower attachment to the labour force, namely women and older workers.
This expansion of the labour force has been tempered, however, by a decline in average hours worked.
The report states that while further research is needed to find out the exact reasons for this decline, it suggests that it may be a result of remote working.
Between 1998 and 2009, average hours worked declined consistently, falling by 13% from around 37 to 32 hours per week.
However, the report states that it increased again after the economic crash, with average hours worked rising again over the decade that followed.
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The bulk of this growth took place in the years leading up to the pandemic (2015-2019), with average hours worked increasing by 3.5%.
This contrasts with other European countries, where average hours worked continued to decline in France, Germany, Italy and Spain during this period.
Following the pandemic, average hours worked dropped significantly in the immediate aftermath, falling by over 7% in 2020.
As the economy reopened, average hours worked did not recover and remained 7% below their 2019 level in 2024.
The report states that, as a result, to get the same level of labour input now requires 7% more employees than before.
Overall, however, total hours worked have increased by 10%during this period, with population growth and increased labour market participation offsetting the decline in average hours worked.
Welcoming the report, Finance Minister Paschal Donohoe said:
'Just over five years ago, during the peak of the pandemic, the economic outlook was shrouded in uncertainty with large sections of our economy forced to shut down overnight. At that time, around 1.2 million people were dependent on the State for some form of income or job support, and there was a fear that the pandemic would leave lasting scars on our economy.
'Thankfully, that economic scarring was avoided. Today, the labour market is in a stronger position than before the pandemic with record levels of employment and an unemployment rate below 5 per cent for over three years. As this publication outlines, record levels of female labour force participation have made a significant contribution to our post-pandemic recovery.'
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