Job Creation, Skills Development and the Changing Labour Market
With a rapidly evolving economy and shifting workforce demands, Ireland’s approach to job creation and skills development will play a crucial role in shaping its future labour market. The Programme for Government (2025) sets a target of 300,000 new jobs by the end of the decade. Achieving this requires targeted investment in critical sectors such as construction, renewable energy, and advanced manufacturing. Skills shortages, particularly in construction industries, remain a major challenge and must be addressed through expanded apprenticeships and training programmes.
National Upskilling Roadmap 2030, developed through the Build Up Skills Ireland 2030 (BUSI2030) initiative, highlights the urgent need for skills development in sustainable construction to meet Ireland’s housing and climate targets. The research, led by Technological University of the Shannon, estimates that 120,000 additional skilled construction workers and re-skilling of 164,000 existing workers will be required by 2030 to support to support housing, retrofitting, and decarbonisation efforts. If Ireland is to deliver on housing commitments and infrastructure projects, ensuring a steady pipeline of skilled workers will be crucial.
At the same time, digitisation and artificial intelligence (AI) are reshaping the labour market. While these technologies can enhance productivity and drive new job opportunities, they also present challenges in terms of automation, job security, and skills mismatches. According to European Centre for the Development of Vocational Training’s (Cedefop) digital transition policy scenario, the rapid deployment of AI and automation could lead to a 5 per cent reduction in employment by 2035, particularly for those in routine jobs, compared to baseline projections. The impact will be particularly pronounced in market and non-market services, wholesale and retail trade, and basic manufacturing, where up to 7.5 million workers across Europe are at risk of displacement. Additionally, Cedefop’s AI survey highlights that older workers, women, and those in precarious employment are among the most vulnerable to these shifts[1]. However, the long-term effects remain uncertain.
Without strategic investment in upskilling and reskilling, there is a risk of deepening inequalities and increase job displacement. Policies must ensure that workers have access to adequate training opportunities, while also addressing concerns about precarious employment in platform and gig work.
To ensure sustainable workforce growth, Ireland must complement job creation with strategic investment in infrastructure—including housing, transport, and public services—so that economic expansion is matched by improvements in living conditions. Simultaneously, policies must balance the benefits of AI and digitalisation with protections against job displacement, precarious employment, and widening skills gaps.
This aligns with the Programme for Government (2025), which commits to enhancing productivity and competitiveness through embracing digital and AI advancements, while recognising the need to upskill the workforce so that both current and future employees are prepared for the technological transformations shaping the labour market.
Therefore, addressing skills development, apprenticeships, and the impact of AI will be increasingly important, but policy must go beyond simply creating jobs —it must ensure that work is secure, well-paid, and future-proofed. A balanced approach that prioritises job quality, fair wages, workforce resilience, and strong social protections will be key to preparing Ireland’s workforce for the evolving labour market while ensuring that economic growth translates into improved living standards for all.
