economic Performance: Ireland and Northern Ireland in 2025
Table of Contents
New research indicates continued economic growth for both the Republic of Ireland and Northern Ireland, with employment rates rising in both jurisdictions. A report, “assessing Economic Trends in Ireland and Northern Ireland,” published by the Economic and Social Research Institute (ESRI) and the Shared Island Unit, details economic performance through the first half of 2025 and highlights key differences between the two economies.
Economic Growth and Employment
In the 12 months leading up to June 2025, the Republic of Ireland’s domestic economy experienced a growth rate of 3.2%, slightly outpacing Northern Ireland’s growth of 2.8%.
Employment figures also showed positive trends. The ESRI reported that Ireland added 63,900 jobs, representing a 2.3% annual increase,while Northern Ireland saw an increase of 20,640 jobs,a 2.5% annual increase, both measured in the year ending Q2 2025. Despite these positive figures, the report notes ongoing disparities in key economic indicators.
Key Economic Disparities
While employment growth rates were comparable in the year ending Q2 2025 (2.3% in Ireland and 2.5% in Northern Ireland), broader economic factors reveal ongoing differences. adele Bergin, co-author of the report, highlighted that Northern ireland continues to lag behind the Republic in areas such as disposable income, educational attainment, labor force participation, and export intensity.
Hear’s a breakdown of key indicators from last year (as reported in the source material):
* Labour Force Participation: Republic of Ireland – 78.5%, Northern Ireland – 75.7%
* Employment Rate: Republic of Ireland – 75.1%, Northern Ireland – 74.3%
* Unemployment Rate: Republic of Ireland – 4.4%, Northern Ireland – 1.8%
The lower unemployment rate in Northern Ireland is a notable difference, despite the Republic’s higher levels of labour force participation and overall employment.
This report is part of a collaborative research program between the ESRI and the Shared Island Unit within the Department of the Taoiseach. The Shared Island Unit aims to foster cooperation and mutual benefit across the island of Ireland. The ongoing research aims to provide a thorough understanding of the economic landscape in both jurisdictions, informing policy and promoting lasting economic advancement.
key Takeaways:
* Both the Republic of Ireland and northern Ireland experienced economic growth and employment increases in the first half of 2025.
* Northern Ireland continues to exhibit lower levels of disposable income, educational attainment, and labour force participation compared to the Republic.
* Northern Ireland has a significantly lower unemployment rate than the Republic.
* The research is part of a broader initiative to promote cooperation and economic development across the island of ireland.