Paul Duffy: Irish competitiveness depends on investment into skills

Another pressing issue is the inclusion of those currently distanced from the labour market. This includes the long-term unemployed, people with disabilities, members of the traveller community, migrants, refugees, and others who have been unable to engage in the workforce. File picture: iStock

Having spent over three decades in the biopharmaceutical industry, I've had the privilege of witnessing the remarkable transformation of this sector in Ireland and with business representative group Ibec, I have seen similar transformations replicated across many sectors, by both Irish and international firms. 

This evolution of numerous companies in Ireland is a testament not only to technological advancements but also to the talent, resilience, and ambition of the Irish workforce.

However, this success should not lead to complacency. In fact, we need to think seriously about our skills base.

The demographic factors that have fuelled our economic growth — namely our young, well-educated, and mobile workforce — are shifting. Although Ireland has outpaced other EU member states in job creation, sustaining this momentum requires us to confront several pressing challenges collaboratively. 

In a world where the supply of labour is increasingly constrained, it is imperative that businesses, stakeholders, and the government unite to ensure we have the necessary talent and skills to compete on a global scale and domestically.

A high-quality, engaging, and dynamic education system is the cornerstone of long-term social and economic development and is critical for addressing the immediate challenges posed by the climate crisis, rapid digitalisation, and infrastructure deficits.

Looking forward, the demand for higher education in Ireland is projected to increase by 20% by 2033. This statistic underscores the urgency of investing in higher and further education to build the capacity required to meet this demand.

Persistent underinvestment in higher education threatens to erode the quality of our education system, widen the gap between Irish universities and their global counterparts, and tarnish Ireland’s reputation as a hub for research and business investment.

To successfully navigate the dual digital and green transitions while enhancing our leadership and innovation capabilities, we must prioritise investment in people and skills.

The National Training Fund offers significant potential to catalyse a transformative shift in industry-led skills development and foster greater collaboration between industry and the education sector.

Another pressing issue is the inclusion of those currently distanced from the labour market. This includes individuals who are long-term unemployed, people with disabilities, members of the traveller community, migrants, refugees, and others who have been unable to engage in the workforce.

To meet the growing demand for talent and skills, we need to bridge the gap to employment for these groups. However, current supports and initiatives are yielding inconsistent results, necessitating a more strategic and targeted approach.

• Paul Duffy is outgoing president of Ibec and, SVP of small molecule operations of Pfizer.