The Expert Group on Future Skills Needs (EGFSN) has published a new Skills Insights Note examining how demographic change is expected to reshape Ireland’s labour market and skills needs over the coming decades. The report highlights the growing importance of workforce planning, lifelong learning, and labour-market participation as Ireland’s population continues to grow and age.
Population Growth and an Ageing Workforce
According to the report, Ireland’s population is projected to increase significantly over the next 30 to 40 years, potentially reaching between 6.5 and 6.8 million people by 2050. While population growth will create opportunities for economic expansion, it will also place increasing pressure on public services, infrastructure, and the labour market.
One of the key findings is that Ireland’s population is ageing rapidly. The average age of the population is expected to rise from 39 years currently to 47 years by 2055. At the same time, the old-age dependency ratio — the number of people aged over 65 compared to those of working age — is expected to double. In practical terms, this means that where there are currently almost four working-age people for every person over 65, this could fall to just two workers by 2045.
The report notes that while Ireland currently has a relatively young workforce compared to many EU countries, demographic pressures will become increasingly visible across sectors over the next two decades. Older workers already make up a growing share of employment in areas such as agriculture, manufacturing, retail, transport, and public services.
Labour Shortages and Workforce Participation
The report highlights that Ireland is already operating close to full employment, with unemployment remaining below 5% throughout 2025 and record numbers in work. As a result, labour supply constraints are likely to become more significant in the years ahead.
Migration has become a key driver of labour-force growth, with inward migration helping to address skills shortages and workforce gaps across many sectors. However, the report also stresses the importance of increasing participation among people already living in Ireland, particularly those who are outside the labour market.
For people who are unemployed or distanced from employment, the findings underline the importance of policies and supports that make it easier to access and remain in work. The report points to a range of barriers that can affect labour-market participation, including childcare costs, transport, housing pressures, and limited flexible working options.
The report also suggests that encouraging older people to remain in employment for longer will become increasingly important. Flexible retirement arrangements, part-time working opportunities, and age-inclusive workplace practices are identified as potential ways to support longer and more sustainable working lives.
Lifelong Learning and Upskilling
A major theme running throughout the report is the growing need for lifelong learning, reskilling, and upskilling. As technological change, digitalisation, and climate transition continue to reshape the economy, workers will increasingly need opportunities to update their skills throughout their working lives.
While Ireland has relatively high levels of educational attainment overall, the report finds that participation in lifelong learning declines sharply with age. Younger adults are significantly more likely to engage in education and training than older workers, highlighting the need for more accessible and inclusive learning opportunities.
This is particularly relevant for workers who may be at risk of labour-market exclusion due to changing skills requirements or shifting employment patterns. The report stresses that expanding access to education and training will be essential not only for productivity and economic growth, but also for ensuring that workers can adapt to changing labour-market demands.
The health and social care sector is identified as one area where demand for skills is expected to increase significantly as the population ages. Healthcare already accounts for almost 14% of employment in Ireland, and the report notes growing demand for nurses, care workers, and medical practitioners. More generally, the report points to increasing demand for workers with both technical and transversal skills, including communication, problem-solving, and critical thinking.