Economic Disparity Deepens Between Northern and Republic of Ireland

The economic performance gap between Ireland and Northern Ireland is steadily expanding, with various indicators showing a notable disparity. Labour Market Trends The report reveals that Ireland surpasses Northern Ireland in multiple areas, including labour market trends, living standards, economic structures, education, health, and overall well-being. The research, conducted by the Economic and Social Research Institute (ESRI) and commissioned by the Shared Island Unit under the Department of the Taoiseach, provides a detailed comparison of the two economies. Population Growth and Age Distribution Notably, Ireland's population is experiencing faster growth than Northern Ireland's, largely driven by robust net migration. This demographic shift has resulted in Ireland having a younger population with a lower old-age dependency rate. Employment and Wages Ireland has seen a surge in labor market participation since 2010, widening the gap with Northern Ireland. In 2022, the employment rate in Ireland surpassed that of Northern Ireland, reflecting Ireland's strong recovery post the financial crisis. Additionally, Ireland enjoys higher hourly earnings compared to Northern Ireland. Living Standards and Income Disparities The report indicates widening gaps in living standards between the two regions, with Ireland holding a favorable position in terms of household disposable income, Gross National Income per capita, and wage levels. Trade and Taxation While Great Britain remains a significant trading partner for Northern Ireland, trade with Ireland has been on the rise. However, Northern Ireland residents pay significantly lower personal income taxes compared to their counterparts in Ireland. Corporate tax receipts per capita in Ireland far exceed those in Northern Ireland. Government Expenditure Ireland dedicates a higher proportion of government spending to health and education compared to Northern Ireland. The report also highlights differences in employment sectors, with Northern Ireland relying more on the public sector, while Ireland's employment is more concentrated in high-value-added industries such as ICT and financial services. To sum up, Northern Ireland and the Republic of Ireland exhibit distinct economic trajectories, with Ireland showcasing stronger performance across various key metrics.