Last week saw the publication of the Northern Ireland Skills Barometer. At NI Chamber, we were pleased to support the launch of the report by the Ulster University Economic Policy Centre, which provides a comprehensive assessment of the future skills needs and gaps within the local economy for the next decade.
Its findings should make employers and government double down on their plans to deal with the demand levels ahead. Northern Ireland’s workforce is projected to grow to around one million jobs by 2033, which is equal to an additional 79,000 jobs over the next decade. However, demographic trends and the structure of the labour market suggest a potential overall skills undersupply across all qualification levels, with a shortage of 5,400 individuals per annum needed to fill vacancies over the next 10 years.
The Economy Minister has given significant commitment to creating Good Jobs. However, this comprehensive research shows that some of those sought-after, higher-value jobs will be difficult to fill with suitably skilled people unless addressing the gap becomes a much higher priority for the region. Addressing it requires coordinated action between policymakers, businesses, and society.
NI Chamber members have been concerned about access to the right skilled people for a considerable time. Our own research confirms that recruitment difficulties, which have grown significantly for more than a decade now, remain persistently high. In Q4 24, 76% of manufacturers and 77% of services firms reported difficulties recruiting.
Improving access to people and skills is one of NI Chamber’s top priorities and we are committed to presenting pragmatic solutions to the issue, which is one of the most significant impediments to economic growth.
A Workforce Development Agency for Northern Ireland
NI Chamber members would like to see a much more demand-led approach to people and skills, with particular focus on areas like AI, automation and digital skills. Late last year, we outlined our own proposals for the establishment of a new, independent Workforce Development Agency for Northern Ireland. Such an agency would ensure that employers and educational institutions are aligned in delivering the critical skills necessary for a competitive and sustainable workforce. Our closed neighbours already have similar structures in place, following the establishment of Skills England by the UK Government, as well as the success of Skillnet Ireland.
Mobility Taskforce
Record low unemployment, an ageing population and a growing proportion of the economically inactive due to long-term sickness will intensify pressures on labour supply in the future. Restrictions on cross-border working and migration policy constraints further compound the problem.
The Skills Barometer emphasises that improving cross-border mobility is vital, with 25,000 people already engaged in cross-border economic activity. We believe that an All-Island Mobility Task Force would go some way to facilitating the smooth movement of skilled workers. This would involve the NI Executive, UK and Irish Governments, and the Migration Advisory Committee working together to remove obstacles related to taxation, social security, and professional qualification recognition.
A childcare strategy now
Northern Ireland remains the only region in the UK and Ireland without a dedicated childcare strategy, hindering workforce participation with a disproportionate impact on female employment. This undermines our competitiveness and acts as a barrier to the workplace for many, where childcare costs outweigh potential earnings.
Employers, including many of our members, have displayed a willingness to play a role in supporting employees with childcare challenges by offering incentives and flexibilities. Whilst it is not the role of the employer to act as a substitute for an Executive strategy, with the right support from a Westminster government, for some employers, the Workplace Nursery Model is an attractive proposition.
Industry-led initiatives, such as the Sleepy Hollow Group’s Corporate Childcare Partnership Scheme, could make a real difference. Cleaver Fulton Rankin, a leading Belfast-based law firm, recently joined the scheme to provide its employees with accessible childcare, demonstrating how employers are already taking the initiative. We hope others will follow.
Addressing the people and skills challenge is central to unlocking opportunities for sustainable economic growth across Northern Ireland. Resolving them requires coordinated action between policymakers, businesses, and society.
