Labour market inequality must be overcome in tackling global recession

Ireland has the highest rate of low pay among western EU states, a problem more acute for migrant workers, women, younger and older workers. But Ireland has two untapped labour sources to help respond to the challenge, writes Maeve O'Sullivan

The Dublin docklands area hosts major offices for many of the world’s largest tech companies including Google’s parent Alphabet. But with just 10 firms accounting for 36% of all the tax paid in the country, our economic vulnerability in the face of a global recession and the current tech downturn has caused some concern.

Recent global tech sector lay-offs have hit Ireland’s workforce hard. Prior to these job cuts, the Irish digital sector directly employed more than 270,000 people, as well as creating many more ancillary jobs.

Tech jobs pay an average annual salary of €74,000 in Ireland and cover 11% of the country’s income tax revenues. While gross pay increased across all sectors in 2021 compared with pre-pandemic levels, tech salaries grew by an impressive 28%, compared with 1% for hospitality workers.