Dublin: Despite having one of the most highly educated workforces in Europe, nearly one in three workers in Ireland is employed in a role that does not match their level of education, according to new research. The findings have renewed concerns about skills underutilisation and future labour shortages.
Ireland ranks among Europe’s leaders in educational attainment, yet a significant proportion of graduates are working in positions that do not fully utilise their qualifications or expertise.
High Levels of Overqualification
Research by the Nevin Economic Research Institute (NERI) found that, in 2019, almost three in ten workers with a third-level qualification were employed in jobs that did not require that level of education.
The findings echo previous studies by the Economic and Social Research Institute (ESRI), which have consistently highlighted Ireland’s high rate of “over-education”—where employees possess qualifications beyond those required for their roles.
According to the report, 65% of people aged 25 to 34 in Ireland hold a third-level qualification, one of the highest proportions in the European Union. Ireland also has the highest share of graduates in science, technology, engineering and mathematics (STEM) among EU member states.
Education Success Not Fully Reflected in the Labour Market
Experts say Ireland’s attractive business environment—supported by low corporate tax rates, access to the EU market and a strong multinational presence—has helped create high-skilled employment. However, the economy has not generated enough suitable roles to absorb all highly qualified graduates.
Researchers also suggest that the widespread belief that obtaining bachelor’s, master’s or doctoral degrees is the primary measure of career success has contributed to rising levels of overqualification.
They warn that many students pursue higher academic qualifications without sufficient consideration of labour market demand, making it more difficult to secure employment aligned with their skills.
Labour Force Expected to Shrink After Mid-2030s
The issue comes as a new Department of Finance study warns that Ireland’s labour market will face significant challenges in the coming decades.
The report, titled “Future Forty: In Short Supply,” projects that Ireland’s workforce will peak during the mid-2030s before beginning to decline as the population ages.
The Department estimates that demand for workers in the healthcare and construction sectors will more than double by 2065.
It also warns that prioritising staffing in these essential sectors could reduce the workforce available for other parts of the economy by more than 20%.
Better Use of Existing Skills Needed
The report recommends that workers currently employed in positions below their qualification level should be encouraged and supported to move into roles that better match their skills.
It argues that making more effective use of Ireland’s highly educated workforce will be essential to addressing future labour shortages and sustaining economic growth.
AI and Workforce Changes Add to Concerns
Experts say the findings become even more significant when considered alongside previous Department of Finance research examining the impact of artificial intelligence (AI) on Ireland’s labour market.
Major technology companies, including Microsoft, have already announced job reductions as they increase investment in AI-driven technologies, with Irish-based roles expected to be affected.
The reports highlight a growing imbalance in Ireland’s labour market: while thousands of highly educated workers remain employed below their qualification level, sectors such as healthcare and construction face persistent labour shortages.
Researchers conclude that without targeted retraining, workforce planning and effective redeployment strategies, Ireland risks failing to fully capitalise on the advantages of having one of Europe’s most educated populations.
Irish Samachar English