The Department regularly monitors the labour market and of course the role of artificial intelligence (AI) has grown immeasurably in importance over the last number of years.
There is no doubt that AI will revolutionise many aspects of the labour market and how we go about our day-to-day work. My department, through the Expert Group on Future Skills Needs (EGFSN) published research on the theme of AI and the labour market late last year. The paper ‘How AI is transforming the Irish Labour Market’ (see: egfsn-skills-insight-note-2025-2-_how-ai-is-transforming-the-irish-labour-market-final-for-website.pdf) highlights the speed at which Ireland is moving in relation to AI. The research noted that Ireland leads in terms of the demand for AI jobs but also has a strong performance in relation to the supply of AI talent.
We have seen a doubling in AI jobs and usage since 2023. While this is a fast-changing field – it shows the inherent dynamism and resilience of the Irish labour market, and this bodes well for productivity, growth and incomes. The paper used national level data to compare Ireland with other European and international economies but doesn’t go specifically into graduate or entry level jobs.
Work published in February of this year from the Department of Finance (assets.gov.ie/static/documents/391b8952/Economic_Insights_Volume_1_2026.pdf) also pointed to the fact that our labour market is highly exposed to AI given the composition of employment here, specifically in relation ICT, financial and professional services. The work also noted that AI may already be affecting employment patterns, with sectors more exposed to AI such as ICT and financial services recording significantly weaker employment growth in recent years.
We will continue to closely monitor AI related developments through research and day-to-day work.
I would also point to last week’s strong labour force survey numbers for the year which showed a record level of employment across the economy, although numbers employed in the ICT sector declined. The extent to which this the impact of AI, or a rebalancing of other factors is not yet clear.
I would also point to several projects underway within my department that will be informative in this regard.
The EGFSN is funding or co-funding AI related work, including a project on ‘Skills for Digital Specialists 2030’.
I expect that this report will be published in the first half of this year and this will identify skills needs and gaps for ICT/digital specialists, including AI.
The EGFSN is also co-funding a new ‘Working in Ireland Survey’ on the Irish labour market being done by UCD. Research from this extensive, all-island study will be available in 2026 and will include work on AI and the labour market.
My department also has a working relationship with the OECD on AI related research, and I expect this will continue this year.