With €700m available to the government to play with in Budget 2020, the National Recruitment Federation wants the state to invest in building talent capability and stimulating supply in the labour market.

The recruitment industry body also wants increased state investment in childcare, housing, transport and developing skills, and is also seeking social welfare reforms aimed at increasing participation in the labour market.

With the unemployment rate at 4.6%, skills shortages in many sectors and lack of workplace education is threatening the economic outlook, according to the federation, among them the cost of housing and commuting, which are common barriers to securing and retaining talent, particularly in Dublin.

NRF president Frank Farrelly (pictured) said: “Ireland’s economic growth is supported by our talented labour market. Multinationals are attracted to Ireland on the strength of it. Business can only thrive with enough suitably qualified people to meet demand for products and services.

“So now more than ever, government needs to adequately address the issues hindering labour market participation, and build our talent capability to support sustainable growth.”

In Association with

The NRF’s pre-Budget submission points out that the labour market is characterised by a diversity of contracts and forms of work, and that government policies need to reflect this, ensuring that lost benefits or tax implications do not, for some, disincentivise working.

It’s also concerned that the supply of labour is failing to keep up with demand, with some market needs facing ongoing shortages.

“Indigenous industry and small firms need support,” said Farrelly. “There is a significant skills mismatch in Ireland’s labour market, STEM skills need to be prioritised, and all sectors would benefit from enhancing the digital capacity of our education and training institutions.”

He pointed out that supporting labour supply, growing employment and facilitating people in going back to work maintains economic development, not least the growth of tax revenues to sustain spending. With slowing growth a likely prospect, such measures will be essential, the NRF says.

“Whether there’s a ‘deal or no-deal’ Brexit, trading difficulties will affect government spending, industry, and the overall economy.  We may see job losses, lower tax revenue and upward pressure on expenditure such as social welfare and sectoral supports,” Farrelly added.