The Ireland ‘is not a destination’
Ireland has not been a destination for foreign investors in the past decade and the country has yet to recover from the financial crisis, according to new research.
The report by Deloitte, which surveyed more than 5,000 Irish businesspeople, shows the country’s financial sector has not grown since the global financial crisis and that it is experiencing significant labour shortages.
While Irish firms have not experienced the boom of the 2008-09 financial crisis that saw a surge in foreign direct investment (FDI) from China, a slowdown in demand from China’s other emerging markets has led to a significant slowdown in investment in the sector, the report said.
It added that the Irish economy remains “relatively small” compared with its global peers and there are some signs of improvement in its business climate, with the number of businesses opening a second time in five years.
“The key challenge for Ireland in the coming years is that of the economy being able to meet the needs of the population and the labour force,” it said.
“As such, there is still considerable scope for improvement in the Irish labour market, particularly given the significant increases in the number and proportion of firms opening.”
However, the Irish labor market remains highly dependent on the availability of skilled workers.
“Deloitte’s findings come amid growing calls from business leaders for the country to focus on creating jobs, and the creation of new ones.
The OECD, which includes the EU and the US, recently announced that Ireland would join the bloc next year.
The Irish Government has pledged to create 1.5 million jobs over the next five years, but it has yet have a firm plan for how to achieve this.
It has been criticised for not having a strong labour market strategy, and its job creation plans have not kept pace with growth.
In December, the OECD said that Ireland’s economic performance was the worst in the eurozone, and was at risk of slipping into recession.