The technology sector has undergone a period of sustained growth for over 20 years. Sectors that have helped to drive this growth include microelectronics, cloud computing, software as a service, and cyber security. Innovation in networking and communications technologies, including in 5G, are also driving investment across all business sectors including for example, industrial, healthcare, and automotive.
Demand for technology and services that support the trend for digitalisation accelerated during Covid, as companies sought to automate and digitalise their processes, and to increase efficiencies. Consumers also moved online at a faster pace, in line with trends in e-commerce, hybrid work and remote learning. Companies providing the infrastructure and applications that supported these trends expanded at a faster pace, leading to increased hiring rates. In the FDI base, this has since led to modest contraction for some tech clients. Where job losses have occurred, in most cases this has been part of a global reorganisation or action. In many cases, Ireland has endured a smaller impact on a proportional basis, and the impacted skills are highly transferrable.
Technology is now pervasive in all business sectors and the need for tech skills across the entire industrial base remains strong. The technology sector continues to be a highly strategic one for Ireland, as evidenced by a number of announcements over the past year, including from Quest, Microsoft, IBM and Dedalus.
It is important to note that the demand for highly skilled qualified talent, particularly in areas such as computer science, cyber security and electronic engineering, continues to outstrip supply. These careers will continue to be in high demand well into the future and offer an excellent career choice for students considering future study options.
Ireland’s commitment to innovation coupled with a skilled workforce and a favourable business environment continues to offer a compelling proposition for prospective investors. Furthermore, as the global economy evolves, Ireland’s adaptability and commitment to sustainability positions the country as an attractive destination for businesses seeking stability and growth.
Government has published strategies which help to position Ireland internationally for investment, including the Government Action Plan on Market Diversification and IDA Ireland’s latest strategy, “Adapt Intelligently: - A Strategy for Growth & Innovation 2025-2029”. Government is focused on delivering the objectives outlined in these strategies.
These objectives are important in the implementation of the recently published National Digital and AI Strategy, “Digital Ireland- Connecting Our People, Securing Our Future”, which outlines a whole of government approach to position Ireland as a European and global leader in digital innovation.
IDA Ireland has established internal processes for dealing with potential and actual job loss situation with its client companies. In the event of any announced or pending job losses, IDA partners with other support agencies at a local level to implement the Job Loss Protocol. This provides a coordinated response by relevant Government Departments and agencies at a local level to support impacted employees. The types of supports that may be provided include:
• Provision of a detailed skills profile for the site; a talent catchment map and timings for when individuals will be available, provided by the company.
• Identification of other employers who may be hiring across IDA and EI client companies.
• Sharing of skills profiles with other companies who may be hiring and direct engagement with HR departments, when appropriate through IDA and EI.
• Briefings by local Department of Social Protection/Intreo officials to impacted employees on social welfare and employment support services to support impacted employees’ transition to new employment opportunities.
• Identification of training and further education opportunities for employees (ETBs; Skillnet; Universities)
• Exploring opportunities to start your own business through LEOs and Enterprise Ireland.
Ireland has a robust framework of legislative protections and supports for workers who are impacted by redundancy.
The Redundancy Payments Act 1967, as amended, requires employers to pay a statutory redundancy payment to eligible employees who are being made redundant and have more than 2 years’ service.
The Protection of Employment Act 1977, as amended, imposes certain legal obligations on employers proposing collective redundancies. Employers are required to consult and provide information to employees' representatives for a 30-day period, before any notice of redundancy can issue.
Employers proposing collective redundancies must also notify the Minister for Enterprise, Tourism and Employment at least 30 days before the first dismissal takes effect.
Collective redundancies arise where, during any period of 30 consecutive days, the employees being made redundant are: 5 employees where 21-49 are employed; 10 employees where 50-99 are employed; 10% of the employees where 100-299 are employed; 30 employees where 300 or more are employed.
Where redundancies occur which fall below collective redundancy thresholds, employers are still legally obliged to conduct the redundancy process fairly and to use reasonable selection criteria in selecting employees for redundancy. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
If an employee believes their employer has failed to comply with collective redundancy rules or they believe their employment rights have been breached, they can make a complaint to the Workplace Relations Commission (WRC). For most employment rights issues, complaints to the WRC must be made within 6 months of the date of the alleged breach. The WRC can extend this time period to 12 months if the employee can demonstrate reasonable cause.