Varadkar: Staff shortages reflect shortcomings in housing and childcare

The Taoiseach said: "People simply won’t take up a job if they can’t find anywhere to live, a creche or a school place for their child."

Taoiseach Leo Varadkar said that more needs to be done to attract people to come and work in the capital which requires “better infrastructure, housing, healthcare, early learning and childcare, all underpinned by co-ordinated planning”.

Labour shortages in Ireland can be seen as a "reflection of real shortcomings" in housing, education and childcare provision, Taoiseach Leo Varadkar has said.

He was speaking at the Dublin Chamber annual general meeting in the Dublin Royal Convention Centre. It comes as data from the CSO shows that employment has hit record highs in the fourth quarter of last year with over 2.5 million people working.

Addressing the AGM, Mr Varadkar said during his time as Enterprise Minister, he often heard that a shortage of labour was the "most pressing issue for employers".

“Yes, the cost of doing business is rising, but labour shortages were usually right up there as the main concern. In some ways this is a problem of success, but in other ways it is a reflection of real shortcomings in our housing, education and childcare provision.

“People simply won’t take up a job if they can’t find anywhere to live, a creche or a school place for their child. Hybrid working can be part of the solution but we also want people to want to live and work in the city."

Mr Varadkar said that more needs to be done to attract people to come and work in the capital which requires “better infrastructure, housing, healthcare, early learning and childcare, all underpinned by co-ordinated planning”.

“These are not areas we have excelled in, but we have the capability to change that,” he said.

Mr Varadkar also referenced the Government announcement on Tuesday which extended the 9% VAT rate to the hospitality sector, for the final time, until September as well as the re-modelled energy subsidy scheme for business (TBESS) to allow more to qualify for it.

“While we can’t remove uncertainty, we will seek to provide as much stability and assistance as possible on the issues that are within our control.” 

In his address to the AGM, as he assumed the position of president of Dublin Chamber, Stephen O’Leary said that Dublin’s lack of affordable housing, poor transport and issues with energy connections could see business' revenue expectations “derailed” in the coming year.

Mr O’Leary said: “Many of our members and their businesses remain optimistic regarding the Dublin economy. Firms were asked within the same report to note their predictions for revenue figures for a year’s time, 63% of Dublin firms reported that they expect revenues will be higher than at present.

“But this can still be derailed if Dublin’s growing pains, such as a lack of affordable housing, poor transport, along with water and energy connections are not addressed,” he said.

Mr O’Leary said that Irish workers “continue to be negatively impacted” by the issues around housing.

“The Government's ‘Housing for All’ strategy is a step towards a more sustainable housing market but is the target sufficient given the demand? We need a more ambitious target for Dublin if government is to address the deficiencies in the housing market.

“The business sector cannot grow or retain talented people if there is nowhere in Dublin for them to live. Young workers are presented with a bleak picture of rising rents, living with parents and a stark reality that home ownership is further away than for any previous generation. This impacts social cohesion, wellbeing and productivity in the workforce,” he said.

Mr O’Leary is the managing director of media monitoring and analysis company Olytico. The AGM was attended by 600 leading businesses in Dublin.