Irish Workers Logging Two Hours Less Weekly Since Pandemic

Employees in Ireland are now working an average of two hours less per week than they did before the pandemic, according to a recent report from the Department of Finance. The analysis highlights a significant recovery in the labour market, which has added approximately 440,000 jobs since 2019. Nevertheless, the average hours worked weekly have decreased from 33.5 hours to 31.2 hours.

The shift in working hours is partly attributed to the rise of remote and hybrid working arrangements. Currently, 35 percent of workers are engaged in such setups, a notable increase from 21 percent prior to the pandemic. This change suggests a lasting transformation in working patterns. Interestingly, the report indicates that the reduction in hours is more pronounced among employees with flexible arrangements compared to those who work on-site. Despite this, average hours have also declined for on-site workers across most sectors, indicating that flexible working is not solely responsible for the decrease.

The report outlines a broader trend where average working hours tend to decline as countries experience economic growth. It states, “As people achieve a certain level of income and comfort, they tend to place a higher value on leisure, leading them to work fewer hours even as their income continues to increase.” This phenomenon suggests that the reduction in working hours is not limited to sectors traditionally associated with remote working, such as information technology.

The food and hospitality sector experienced a 6.5 percent drop in average hours worked, while construction saw a 5 percent reduction. The agriculture sector recorded the largest decline at 12 percent, largely attributed to a high proportion of self-employed workers, whose hours can be more variable than those in traditional employment.

Labour Market Recovery and Participation Rates

The report, titled Continuity and Change: Examining Recent Trends in the Irish Labour Market, asserts that the Irish labour market is stronger than before the pandemic, with a record 2.8 million people employed. Key factors driving this growth include significant inward migration and increased participation rates, particularly among women. The report notes that net migration exceeded 75,000 in both 2023 and 2024, a vital contribution to meeting high labour demand as the economy expanded rapidly.

Furthermore, female participation in the workforce has surged by nearly 4.5 percent since the onset of COVID-19, a trend linked to the availability of more flexible work options. The report highlights that while the participation rate has increased across all demographics, the most substantial gains have been seen among groups with traditionally lower attachment to the labour force, including women and older workers.

Future Challenges and Productivity Concerns

Despite the positive trends in employment, the report cautions that productivity metrics may mask a persistent gap between multinational and domestic firms. As the population ages and levels of inward migration decline, the report indicates that productivity growth will become increasingly crucial for long-term economic growth.

Overall, the findings underscore a complex landscape in the Irish labour market, marked by both recovery and evolving work patterns. The insights provided by the Department of Finance offer a detailed overview for policymakers and business leaders as they navigate the future of work in Ireland.