Irish Employers, Unions Urge Government Action on AI Job Impact Amid 1,070 Meta/Covalen Cuts
Irish employers and unions urge government action on AI's job market impact, citing IMF warnings of 40% of Irish jobs affected. They call for retraining investment and updated redundancy laws. Recent Meta/Covalen job cuts highlight the immediate need for proactive measures and dialogue on AI's rapid changes.
Irish employers and trade unions are united in calling for government action to mitigate the significant impact of AI on the job market. This comes as the International Monetary Fund (IMF) warned 40% of Irish jobs could be affected by AI, and the Department of Finance previously estimated 60%. Ibec, the employers’ group, believes the actual figure is closer to 100%, stating that nearly all 3 million Irish workers will see their jobs change, even if indirectly through supply chains.
Ibec advocates for increased investment in retraining and upskilling, a view supported by unions who also argue for updating Ireland’s 23-year-old redundancy legislation. Ger Brady, Ibec’s chief economist, highlights that the National Training Fund (NTF) is projected to have a €3 billion surplus by decade-end, which could be used for training during this critical labor market transition. Recent job cuts, including 1,070 at Meta and its contractor Covalen, underscore the immediate reality of AI displacement, with some workers receiving no redundancy due to short tenure.
Trayc Keevans of Morgan McKinley notes that while AI automates repeatable tasks, workers are being redeployed, retrained, or moved into oversight roles. She also points to the creation of about 80 new job titles, such as prompt engineer and AI ethics manager. However, graduate hiring has been impacted, and sectors like banking and insurance are expected to be severely affected. John O’Connell, Financial Services Union general secretary, emphasizes the need for government leadership and a dialogue forum, similar to the 2022 Retail Banking Review, to address these changes proactively.
Malcolm Byrne TD, chair of the Oireachtas joint committee on AI, acknowledges the widespread societal issue and the government’s focus on identifying at-risk jobs and upskilling citizens. He stresses that individuals and employers must proactively consider skills that are irreplaceable by AI and those needed for future collaboration with the technology.