A Future-Ready Skills Base

Over the past decade, Ireland has consistently outperformed its peers in the European Union. Last year, for example, the International Institute for Management Development ranked it the most competitive economy in the euro area, while its foreign direct investment stocks stood at $1.2 trillion and its gross domestic product grew by 8% — double the rate of any other EU country.

According to Taoiseach Micheál Martin, important factors behind Ireland’s success include its flexible labor market and heavy emphasis on education. “Our skills base is a major driver in attracting international companies,” he states. “We also have a very open approach to collaboration between education and industry at all levels. A good example of this is the National Institute for Bioprocessing Research and Training, which focuses on skills for the biopharmaceutical sector. It has been developed in partnership with industry, with around 40 to 50 companies helping to shape training so it matches real workforce needs from technical levels through to PhD.”

Micheál Martin, Taoiseach The government’s commitment to continuous skills development is evident in its approach to further education and training (FET): it invests over $1.27 billion a year in that sector and has built it into all major socioeconomic policies. At the heart of the FET sector is state agency SOLAS, which provides leadership, investment, strategy and oversight, and works in partnership with the country’s 16 regional Education and Training Boards (ETBs) that deliver programs.

“A strong talent pipeline is one of Ireland’s competitive advantages, and our mission is to help sustain and strengthen that advantage. We are involved in every part of the economy, and education-enterprise collaboration is a big part of our strategy,” says SOLAS CEO Deirdre McDonnell. “All countries are grappling with the challenges of demographics, technological change and the climate agenda. FET is at the core of how we respond to some of those challenges in Ireland. For example, learning in artificial intelligence, digital and green skills is being embedded across everything we do.”

Deirdre McDonnell, CEO, SOLAS Every year, over 200,000 learners engage with the ETBs in a range of ways, including full- and part-time, online and blended programs, as well as micro-qualification courses. “People can access programs that suit their circumstances,” McDonnell explains. “FET serves a broad audience, and inclusion is a particularly important focus.”

Another priority is apprenticeships and traineeships. “Our apprenticeships have expanded to new economic sectors in recent years, including areas like cybersecurity, robotics and biopharma, and the total number of people participating in an apprenticeship has reached 32,000,” she details. “Partnering further and higher education providers and enterprise is a strong component of our apprenticeships and what makes them successful.”

The government is investing almost $120 million in capital funding to upgrade FET facilities and invest in specialist equipment for programs throughout the country over the next three years. According to the CEO: “Investment in facilities and specialist equipment will help us strengthen the quality of our offering and ensure that FET remains central to Ireland’s skills, inclusion and innovation infrastructure.”

Fergal O’Brien is executive director of policy, lobbying and global affairs at Ibec, Ireland’s largest trade body. He notes that the country’s extensive and expanding FET structures include initiatives from not just SOLAS, but also enterprise-led training networks, the national workforce development agency Skillnet Ireland and other bodies such as the investment promotion agency IDA Ireland. For example, as part of the latter’s 2025-2029 strategy, it aims to upskill 40,000 people and had already overseen the training of 30,000 during the strategy’s first year of implementation.

“These structures are helping businesses to actively shape their future talent pipelines and prepare for a rapidly changing global economy,” says O’Brien. However, despite the country’s investment in FET, some Irish employers still face skills shortages due to their increasing specialization across sectors such as advanced manufacturing and technologies. “Talent challenges for businesses globally have never been greater, as rapid technological change and artificial intelligence are transforming business models at unprecedented speed,” he explains. “While companies are optimistic about these opportunities, they are increasingly aware that the main constraint is not access to technology, but access to skills.”

Ireland is better placed than most to address those challenges, O’Brien believes. “All employers contribute 1% of their payroll to a National Training Fund, which — as a result of strong employment growth — now has a surplus of around $2.3 billion, creating a major opportunity to invest more directly in skills development,” he reveals. “With significant resources in the National Training Fund, as well as its strong supports for lifelong learning and upskilling by international standards, Ireland is well placed to respond.”