The Productivity Gap Between Northern Ireland and Republic Widening

The Story of the Productivity Gap

It was only a few years ago that Northern Ireland and the Republic of Ireland had similar levels of productivity. However, in recent years the gap between the two has widened, with the Republic of Ireland's productivity exceeding that of Northern Ireland. As a result, the Northern Ireland Affairs Committee has been investigating what is causing this productivity gap and what can be done to close it.

The productivity gap is not only a concern for businesses in Northern Ireland but for the whole UK economy since Northern Ireland is a significant contributor to the UK economy. Therefore, identifying the causes and finding a way to address them is vital for the UK's economic growth.

The productivity gap can be seen in a range of statistics such as:

• The Republic of Ireland's GDP per capita is 28% higher than Northern Ireland's (NISRA)
• Northern Ireland has a business stock per capita of £5,065 while the Republic of Ireland has a business stock per capita of £9,431 (Eurostat)
• The employment rate in Northern Ireland is 68% while it is 77% in the Republic of Ireland (NISRA)
• The average rate of productivity growth in Northern Ireland is 0.2% while it is 3.3% in the Republic of Ireland (Northern Ireland Affairs Committee)

These statistics provide a stark contrast between the productivity levels of Northern Ireland and the Republic of Ireland. The productivity gap is affecting areas such as business investment, employment, and economic growth, making it a significant issue that requires attention.

Conclusion

The productivity gap between Northern Ireland and the Republic of Ireland is concerning for businesses and the UK economy. Addressing the causes behind the productivity gap is crucial to enhance economic growth and stability in Northern Ireland. The Northern Ireland Affairs Committee has identified the primary causes for the productivity gap, including:

1. Skills shortage: a lack of skilled workers and training opportunities.
2. Infrastructure: inadequate infrastructure affects the ability to invest and develop businesses.
3. Political and economic uncertainty: a lack of clarity in political matters affects businesses' ability to plan and invest.

Addressing these causes requires a comprehensive plan and collaboration between businesses, government, and education providers. Offering training and development opportunities, improving infrastructure, and reducing political uncertainty are essential to narrow the productivity gap.

Businesses in Northern Ireland need to take a proactive approach to address the productivity gap. This can involve investing in training and development, enhancing networking opportunities, and taking advantage of available government support.

Addressing the productivity gap will take time and effort, but it is essential to ensure long-term economic growth and stability in Northern Ireland and the UK.