2026-01-13

110. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Tourism and Employment to outline the measures his Department plans to introduce to correct the imbalance in unemployment rates between regional areas and urban centres; and if he will make a statement on the matter. [2418/26]

What does the Minister plan to introduce to correct the imbalance in unemployment rates between the regional areas, particularly the north and western regional area, and the urban centres? Despite the song and dance the Department and the Taoiseach made today over the strong overall employment statistics for the State as a whole last year, recent figures have revealed a growing imbalance between the unemployment levels in the urban centres and unemployment in regional areas. Will he outline the measures his Department will take to address this?

As the Deputy is aware, the programme for Government sets out a strong enterprise and fiscal framework that prioritises economic and employment growth and competitiveness, with a target to support the creation of 300,000 extra jobs by 2030. I am pleased to report that, one year on, the Irish labour market continues to record sustained employment growth, rising labour force participation and record job numbers last year, indicative of a resilient performance. In total, over 2.8 million people are now employed in Ireland with employment up 61,500 on average in the first nine months of last year. While this is a record level of employment, it is the case that the pace of job creation slowed as the year progressed. The overall robust employment performance reflects both the inherent dynamism within the economy and the success of Government policies aimed at supporting job creation, fostering innovation and providing opportunities for all sectors. Ireland’s labour market performance also compares very favourably with our European counterparts. In respect of the regions, this is something we have watched very closely. It is important to stress that the labour market here is very open and dynamic, with strong increases in labour supply. Furthermore, the prevalence of remote working and commuting patterns complicate comparisons across regions. Nonetheless, over the past year we have seen some increases in regional unemployment rates, notably in the mid-west and Border areas, where the unemployment rates averaged 5.2% and 4.8%, respectively, over the first three quarters of 2025. Furthermore, the increases over the year in these areas were above the national average. At the same time, some areas saw a decline in unemployment, with the south-west region’s unemployment rate averaging 3.8%, well ahead of the national average, and the employment rate in the west averaging 5% over the first three quarters of 2025. Balanced regional development is a Government priority under my Department.

Let us look at the figures. They are not mine, obviously; they those of the CSO, backed up by reports produced by the Northern and Western Regional Assembly, whose work in this regard I acknowledge. It is very important for us to know the picture. On regional unemployment, the CSO states that the State's overall figure for unemployment at the end of quarter 3 of 2025 was 5.3%. The northern and western region, which incorporates the five counties of Connacht, including that in which the Minister of State and I live, as well as Donegal, Monaghan and Cavan, had the highest regional unemployment rate in the country, at 6.1%. This region has been categorised by the EU as a lagging region, well behind Ireland's other two regions, which have a GDP per capita that is almost three times higher. Most worryingly, if we drill down further, just looking at the unemployment rate for the west, which includes our county, Mayo, we see the rate was as high as 6.7%. That is over 25% higher than the figure for the State as a whole.

I acknowledge the significant buoyancy within our labour market. On the Deputy’s earlier point, it is not a matter of a song and dance; it is actual fact that we are very much creating balanced regional growth. That is evident from the high employment and rising participation rates right across the country. With 2.82 million people at work, a record level, we continue to implement good, sound Government policy. With regard to our regions, we have an open and highly mobile workforce. Remote working has certainly enhanced the attractiveness of working within the regions, with the activity in this regard very much related to urban companies. We will have the next iterations of the nine regional enterprise plans. These are bottom up and will be led by local stakeholders, focusing on key sectors. We will also ensure labour market resilience. The Action Plan on Competitiveness and Productivity, which will complement the successor to Pathways to Work, contains targeted activation measures to ensure that we will have the necessary skills and participation, and that we will remove any barriers that exist for those within our regions.

In that case, why are so many people moving to Canada, Australia and Great Britain? It just does not add up. If they had jobs and a place to live, they would be staying at home. The Government’s enterprise support structure and investment and skills programmes remain disproportionately concentrated in already prosperous areas, while towns and rural regions struggle to attract sustainable employment. We need concrete action from the Government to attract and retain employers in regions with persistently high unemployment. We need to ensure the IDA Ireland and Enterprise Ireland strategies have a genuine regional impact. We need to align education and training programmes with the local labour market needs and to support SMEs, which are the backbone of regional economies. Warm words and strategies are no longer enough. Regional unemployment requires targeted, measurable and time-bound interventions. We cannot ignore the figures that are in front of us.

We are doubling down on skills development. Very much part of that is the fact that we are working with the Department of Further and Higher Education, Research, Innovation and Science on apprenticeships and training courses, expanding many of the skills within Springboard and Skillnet and working on digital and green skills. The results of IDA Ireland’s most recent report show there were over 183 investments, 57% of which were regionally based. That demonstrates how important it is to ensure we have the jobs outside our main cities. The facts do not lie. This comes on the back of our upskilling of many people, including students, right across the country. We have a commitment concerning over 33,000 employees, with a focus on the retention of skills. Also, we are investing in regions, and that is through IDA Ireland’s Adapt Intelligently programme. We even see that a new advanced manufacturing facility is being progressed in County Mayo, in Castlebar, and the securing of a new land bank is being considered.