All-island Labour Market Study 2024
Groundbreaking New Study Highlights All-Island Labour Market Challenges and Opportunities
A comprehensive new study examining the all-island labour market has been released. Commissioned by the Labour Employer and Economic Forum (LEEF) Shared Island Working Group, the study examines the current conditions of the island of Ireland labour market, and challenges and opportunities for effective operation for workers and businesses across the island. This is an in-depth assessment of what it means to live, work, and employ people across the border between Ireland and Northern Ireland.
The study aims to provide an evidence base that will inform and contribute to public and political discussion on addressing challenges and enhancing opportunities for workers, businesses and the wider economy while aligning with the objective of the Good Friday Agreement to enhance cooperation, connection, and mutual understanding on the island.
The report notes that the Common Travel Area (CTA) should provide the basis for a successful all-island labour market but finds that in practice it can be exceptionally complex. The current rules and regulations, and their practical application, need to be assessed to ensure that they do in fact support the free movement of workers between the jurisdictions. Further, the ability of non-Irish and non-UK residents to work on a cross-border basis will also be a critical consideration in what constitutes the all-island labour market going forward.
“With increasingly interconnected economies and more extensive opportunities to work together, it is vital that we consider our labour market from an all-island perspective,” said Maureen O’Reilly, Economist, and co-author. “This study highlights the significant cross-border challenges encountered by employers and workers across the island and suggests that greater clarity and collaboration is needed to maximise the opportunities that the labour market can offer for economic growth”.
The study offers actionable insights for policymakers, businesses, and cross-border workers, across a range of areas including taxation, pensions, social security, mobility of workers, skills and qualifications, collective bargaining and trade union coverage.
Rose Tierney, dual qualified Chartered Tax Adviser and Chartered Accountant in both the UK & Ireland, and co-author, said “Small businesses and cross-border employers must comply with complex taxation rules designed for large, international operations. For workers who live on one side of the border on this island and work for an employer on the other side, the complexity of dual payroll and the lack of pension tax relief are difficult and costly for both employers and employees to navigate.
It was helpful to discover that other border regions have moved ahead with bilateral agreements that significantly ease the burden on local employers while encouraging the cross-border mobility of skilled workers. This study gives hope for real progress in engaging with policymakers on both sides of the border to work through potential solutions for this island.”
The study also reflects on the normalisation of remote and flexible working patterns, which offer significant potential for economic growth, especially in rural areas. Annmarie O’Kane, Border People project manager with the Centre for Cross Border Cooperation, and co-author stated “The benefits of remote working cannot be overstated. However, in a cross-border context, they are often overshadowed, for both employers and employees, by significant administrative and financial challenges. As a result, businesses, reliant on the cross-border labour pool, are often unable to meet the flexible working expectations of employees. This puts cross-border businesses at a disadvantage when attempting to retain and attract skilled labour which is inextricably linked to competitiveness and business growth. Other border regions have found solutions to similar challenges and there is significant scope to learn from those experiences”.
Throughout the research period, the authors engaged with government agencies, business leaders, business representative organisations, advice providers, and cross-border workers from both sides of the border. Their input helped focus the study on the practical, lived experiences of individuals living, working and investing in the region. Their contributions often emphasised the need for shared policies and strategies that reflect the interconnected nature of the labour force they are so reliant on.
The full report is available to download
NOTES TO EDITOR:
The views expressed in this report are those of the authors, and do not necessarily reflect the views or policy of Government Departments or of LEEF members.
About LEEF:
The Labour Employer Economic Forum (LEEF) is a formal structure for social dialogue between Government, Trade Unions and Employer representatives. LEEF is a non-binding consultative group. The purpose of the Forum is to discuss economic and employment issues insofar as they affect the labour market.
The LEEF Shared Island Working Group was established under the aegis of the LEEF and is chaired by the Department of the Taoiseach at senior official level. Membership includes representatives of business organisations and trade union organisations. The purpose of the Working Group is to facilitate engagement, discussion, and information sharing amongst members, at a high level, on the Shared Island Initiative and in particular, aspects of the shared island policy agenda which are related to LEEF’s focus of issues related to the labour market.
About the authors:
Maureen is an independent economist, experienced in undertaking economic impact assessment, policy evaluation, economic appraisal, strategy, briefing, research and statistical analysis. Since 2011, she has headed up her own economic research and consultancy company working closely with the public, private and third sectors. She regularly presents views on the economy, including trade, skills and tourism, and is a Senior Research Associate at the Centre for Cross Border Cooperation. Maureen is a Member of the Northern Ireland Fiscal Council, created to bring greater transparency and scrutiny to NI’s public finances, and a Board Member of Enterprise Northern Ireland which represents local enterprise agencies’ interests and lobbies on behalf of small business. Maureen has held several senior roles including as Head of the Policy Evaluation Unit at the Northern Ireland Economic Research Centre. She was also a member of the Panel appointed by the Economy Minister to carry out the Invest NI Review in 2023.
Maureen holds a first class honours degree in Economics and a master’s with distinction in Applied Economics.
Annmarie joined the Centre for Cross Border Cooperation (an independent cross-border think tank, based in Armagh) almost 16 years ago. As Information Manager she manages the Centre’s flagship project, the Border People project – www.borderpeople.info – which provides cross-border information and support for people living and working in Ireland and Northern Ireland. Through the project she fosters cross-border cooperation, capacity building, and knowledge sharing between advice sectors, government departments and policymakers in both jurisdictions.
Prior to working with the Centre, Annmarie enjoyed roles in business support organisations in both jurisdictions; Chambers of Commerce of Ireland, Wicklow and Navan Chambers of Commerce, Meath Leader, and Newry and Mourne Enterprise Agency. She holds a BA HONS in Business Enterprise Development from Ulster University, a Higher Diploma in Accounting, and accreditations in community development and welfare rights.
Rose Tierney, BA BFP FCA CIOT CTA AITI CTA, is a Business and Finance Professional, a Fellow (FCA) of both Chartered Accountants Ireland and Chartered Accountants England and Wales, an Associate (CTA) of both the Chartered Institute of Taxation in the UK and the Irish Taxation Institute in the Republic of Ireland and is a qualified Customs Clearance and Trade Facilitator.
Rose spent several years working in practice in the UK and Ireland, in small, medium and large firms. She finished the employment part of her career as a Director in EY before venturing out as sole practitioner and establishing TTax – Tierney Tax Consultancy in 2004 – www.tierneytax.com.
The practice is based on the border with offices in Monaghan and Fermanagh and is a true cross border tax practice. The dual qualifications put the practice in a unique position to advise clients on both sides of the border across the island of Ireland and Great Britain. It is a boutique tax practice providing tax services across all heads – Income Tax, Corporate Tax, Capital Taxes, VAT, Employer, Customs, and Stamp taxes. They provide advisory and compliance services to private clients, companies and individuals in the Republic of Ireland and the UK and act as a consultant to professional accountancy and legal practices on both sides of the border for tax and VAT queries arising within their client bases.
Rose served as a Member of the Council of the Irish Taxation Institute between 2004 and 2007, provides CPD training to accountants and tax advisers through various bodies and sits on the examining team of one of the professional institutes.
Dr Anne Devlin is a Research Officer in ESRI’s Economic Analysis Division. Her research interests are primarily in the areas of labour economics, economics of disability, economics of education, and social inclusion. Anne has also been involved in research projects examining various aspects of the all-island economy. She recently co-authored a study of cross-border working on the island of Ireland with ESRI colleagues.
Anne obtained her PhD in Economics from Queen’s University Belfast in 2021. Anne holds a BSc in Economics and an MSc in Management from Ulster University. Prior to joining the Institute in December 2020 Anne held a post at Ulster University. Anne is a Visiting Researcher at Queen’s Business School, Queen’s University Belfast and a Steering Group member of the All-Island Social Security Network.
