Ireland has been placed near the bottom of a global ranking of workforce quality compiled by recruitment firm Hays, with high costs and pressure on the availability of skilled workers impacting its position.
Developed by advisory firm Oxford Economics, the Hays Global Talent Tracker ranks the Republic 33rd out of 35 of the world’s leading economies, behind European competitors like Sweden, the Netherlands and the UK.
Hays Ireland said that while the Republic ranked well in some pillars of the study – including talent innovation and participation – the ranking was dragged down by poor performances elsewhere.
The economy’s ranking fell sharply within the pillars of talent value and talent market flexibility, the firm said.
RM Block
“The findings reflect the pressures of a market nearing full employment, where rising business and wage costs present an ongoing need to enhance productivity,” according to Hays.
The Republic also ranked in the bottom 10 for talent development, pointing to “the importance of continued investment in Ireland’s education and training infrastructure”.
Will Imagine’s big gamble double its customer base?
“Ireland continues to benefit from a highly skilled and innovative workforce, but the findings suggest there are opportunities to strengthen our position further on the global stage,” said Barney Ely, senior managing director for Ireland at Hays.
“The report highlights the importance of ensuring that investment in talent aligns with value creation and underscores the need to continue developing the skills pipeline required for tomorrow.”
“Encouragingly, the report positions Ireland as a country with strong potential to lead through innovation, adaptability, and its commitment to education and workforce development.”
The results echo concerns raised by the National Competitiveness and Productivity Council earlier this year.
In July, the body, which advises the Government on key issues facing the economy, said competitiveness is on a downward trend, and there remains a “critical need” to address key infrastructure deficits at a time when the country’s economic outlook is “firmly tilted to the downside”.
While Ireland is ranked as the most competitive country in the euro area and the seventh most competitive economy in the world, it has fallen from second place just two years ago.
The decline was largely due to a drop in “business efficiency” from third place to 11th.
