The all-island economy has become an increasingly important source of growth, opportunity, and resilience for businesses and workers across Northern Ireland and Ireland. But while businesses increasingly operate across the island, the all-island labour market has yet to realise its full potential.
Drawing on a survey of more than 1,200 employers and employees across Northern Ireland and Ireland, the All-Island Workforce Report: Tomorrow’s Talent examines recruitment and skills pressures, appetite for cross-border work, the practical barriers limiting labour mobility, the growing impact of AI, and the regulatory landscape facing businesses operating across the island.
What does the research tell us?
There is significant untapped potential in the all-island labour market that could have a real impact on the economy if barriers are addressed. Nearly half (46%) of respondents would consider working for a cross-border employer in their next role, while 59% say they would be more likely to do so if it were easier to live in one jurisdiction and work in the other.
For businesses facing skills shortages, this represents a major opportunity. Half of employers say the availability of suitable candidates has worsened over the past year, while 69% believe the skills needed to fill their current vacancies already exist in the neighbouring jurisdiction.
But significant barriers remain, holding back this potential. Among respondents unlikely or unsure about considering cross-border work, the cost of commuting is the most commonly cited deterrent (55%), followed by poor transport links (27%) and tax or social security complexity (26%). Employers identify tax or benefit alignment (53%), better transport links (51%) and greater ability to offer hybrid or remote cross-border roles (49%) as leading priorities for improving labour mobility.
The research also shows how technology is reshaping the labour market. Almost three-quarters (74%) of respondents use AI in their day-to-day work at least occasionally, while 41% of employers say AI has changed their recruitment needs. Changes in the skills required for existing roles are more commonly reported than reductions in roles or demand for new ones, reinforcing the importance of upskilling and reskilling.
However, the AI transition is not being experienced evenly across the island. While 65% of respondents working in Ireland feel their organisation is prepared for AI’s impact on the workforce, this falls to 54% in Northern Ireland. A similar gap emerges in leadership understanding: 62% of respondents in Ireland believe their leaders understand the potential impact of AI on work and skills fairly or very well, compared with 49% in Northern Ireland.
What does this mean for business?
The findings point to a significant opportunity for businesses to think to the skills available in the all-island market when planning for future skills and recruitment. With 69% of employers believing the skills they need to fill current vacancies exist in the neighbouring jurisdiction, looking across the island could help firms widen their talent pool and address hard-to-fill roles.
While access to a wider talent pool can help firms address skills shortages and provide greater flexibility to employees, tax, payroll, social security, visa and regulatory requirements hold back potential. Accessing the opportunities available in the all-island market require businesses to understand the practical implications of cross-border work.
The findings also highlight the importance of flexibility. Employees increasingly expect roles to fit around where they live and how they work, with a majority preferring hybrid working for cross-border roles over fully in person or remote, yet the current rules can make hybrid cross-border roles particularly difficult to offer. Businesses that can successfully navigate these requirements and provide attractive, flexible opportunities may be able to reach a much wider pool of talent.
Businesses should also prepare for changing skills needs as AI adoption grows, ensuring leaders understand its workforce implications and that employees have opportunities to develop the skills required as roles evolve.
Seizing the potential of the all-island labour market means giving business greater access to the skills they need, giving workers a wider range of career opportunities, and building a more flexible and resilient workforce across both jurisdictions. The CBI, alongside our partner Ibec, continues to advocate for improved cross-border talent mobility, including to address the barriers holding it back. This report serves as a vital barometer of the current state of play and indicates the scale of potential for the all-island labour market to both policymakers and businesses.
What needs to change?
The report points to a need for greater clarity and information for businesses and workers navigating cross-border employment; practical action to improve transport and labour mobility, including through addressing taxation complexity, and closer policy and regulatory alignment where appropriate.
It also highlights the value of greater North–South collaboration on skills, ensuring businesses can access the talent they need while workers can take advantage of opportunities across the island.
The CBI will continue working with our members and policymakers across both jurisdictions to build on these findings. Our focus will be on turning the evidence into practical policy solutions that reduce unnecessary barriers to mobility, strengthen the all-island skills base, and help businesses and workers capture the full opportunities of a more connected labour market.
Contact Melissa McLaughlin, Senior Policy Adviser, CBI Northern Ireland, for more information.
