Proof, if any were needed, of the enduring strength and importance of the economic relationship between Ireland and the US can be found in the latest employment figures. Some 245,000 people are directly employed by US multinationals in Ireland, an increase of more than 16 per cent since 2024.
“Employment by US multinationals represents 8.75 per cent of total employment in Ireland,” says American Chamber of Commerce Ireland (AmCham) chief executive Paul Sweetman. “In 2024, US companies also indirectly supported 169,000 jobs in Ireland. Those companies contribute more than €40 billion to the Irish economy annually on payroll, goods and services and capital expenditure.”
It’s not all one-way traffic and many people would be surprised to learn that Ireland is now the fifth-largest source of foreign direct investment into the US. “There are 781 Irish-owned companies with operations in the US,” Sweetman notes. “Those companies employ almost as many people in the US as US companies employ here in Ireland, with 202,000 people employed by Irish-owned companies across all 50 States. In addition, Irish exports to the US grew by 25 per cent in 2024, compared to the previous year. It really is a two-way business relationship that is very beneficial for both countries.”
He points to talent and skills, and infrastructure development as key areas for attention if that relationship is to be maintained and strengthened. On the talent issue, he says that Ireland’s educated and highly skilled workforce has long been its main competitive advantage in attracting FDI.
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However, industry needs 100 per cent certainty with regard to the availability of talent, he adds. “But two-thirds of our members are experiencing a skills gap,” he says. “The biggest gaps are in critically important areas like digital and data, engineering, machine learning, AI, and cyber. Over two-thirds of AmCham members have difficulty filling vacancies and the number one barrier for them is a shortage in those specialist skills.”
The immigration system has a role to play in filling these skills gaps, according to Sweetman. “With Ireland’s economy at full employment and companies experiencing skills gaps in critical areas, the ability to attract and retain international talent plays a key role in facilitating inward investment and business expansion,” he says.
Indeed, international talent is already playing a significant part in meeting the Republic’s skills needs. “One fifth of Ireland’s workforce are non-Irish,” Sweetman notes. “Seventy per cent of people moving to Ireland have a third-level qualification and Ireland has the sixth-highest share of international workers in the EU. One of the key concerns for AmCham members is the processing times relating to an entry visa in Ireland which can range from between four to eight weeks. This time frame is significantly longer than those in other jurisdictions, with UK processing times averaging between just five and seven days.”
Home-grown talent cannot be ignored. “We need to make sure that the pipeline of talent coming through the universities and the apprenticeship system is maintained,” says Sweetman. “We also need to ensure the education system is aligned with the needs of industry.”
The American Chamber launched a white paper on immigration in October. Among its key recommendations were a streamlining of the system to create a unified permit that combines an Irish residence permit (IRP), employment permit, and entry visa. The white paper also called for the digitalisation of services including the consolidation of migration portals and enhancing family reunification which is seen as key to attracting talent.
The other key area identified for attention by the American Chamber is infrastructure. “There are three areas primarily,” says Sweetman. “These are housing, planning and energy. Housing is the number one risk to FDI in the next five years, followed by constraints on public infrastructure development. That’s we are so focused on housing.”
The organisation is calling for annual updates and reviews of housing targets to ensure targets are reflective of needs both in the private purchase and rental markets for both current and future demand. “A continued focus on and delivery of housing to support talent is also very important,” says Sweetman. “In our most recent survey, 98 per cent of our members stated that the availability of residential accommodation is challenging for staff in their business operations in Ireland. Delivering for the housing needs of talent is therefore crucial in ensuring Ireland remains an attractive location for business.”
Addressing Ireland’s public infrastructure constraints is also critically important, he says. In this regard he calls for the implementation of measures to allow for the prioritisation of critical infrastructure projects. “Clarity is also required with regard to timelines for planning applications, given the importance of such timelines for investor confidence,” he adds. “The Government’s Accelerating Infrastructure Taskforce is due to report shortly. We look forward to seeing its recommendations on this crucial area.”
On energy, he says that existing electricity grid capacity needs to be enhanced to accommodate growing demand and the increased amount of renewables coming on to the system.
“We also need to develop a long-term offshore wind strategy to realise Ireland’s renewable energy potential,” he says. “It is estimated that over 70GW of offshore wind potential can be delivered and serviced from the Shannon Estuary alone. If even 10GW of that potential is realised it would be enough to power all of Ireland’s current energy needs.”
