A new study has revealed that the Republic of Ireland is outperforming Northern Ireland in multiple key areas, including wages, economic growth, and overall living standards.
The research, published by the Economic and Social Research Institute (ESRI) and commissioned by the Shared Island Unit within the Department of the Taoiseach, paints a detailed picture of the widening gaps between the two jurisdictions.
In terms of earnings, the difference is even more pronounced. Hourly wages in the Republic are 36% higher than in Northern Ireland. When using Modified Gross National Income—a more accurate measure of domestic economic activity that excludes multinational impacts—the Republic’s economy is 57% stronger per capita compared to the North’s GDP figures.
The study also notes significant differences in education. In the Republic, education enrolment is higher across all age groups. Alarmingly, 30% of 15–19-year-olds in Northern Ireland were not in education between 2018 and 2022—a trend that the report describes as "extremely alarming."
The report also found that life expectancy is two years longer in the Republic than in the North.
Although productivity in certain sectors like construction, agriculture, forestry, and fishing is higher in the North, overall labour productivity in the Republic is 2.5 times greater.
“We assessed a broad set of indicators—from labour market trends and income to demographics and well-being—and found a consistent pattern: the Republic is pulling ahead in almost every category,” she said.
Dr Bergin also acknowledged Brexit as a factor in changing trade dynamics, noting that increased trade between North and South has coincided with reduced commerce between Northern Ireland and the rest of the UK.
The research, published by the Economic and Social Research Institute (ESRI) and commissioned by the Shared Island Unit within the Department of the Taoiseach, paints a detailed picture of the widening gaps between the two jurisdictions.
Wages and Incomes Substantially Higher in the South
One of the most striking findings is the disparity in household disposable income, which is 18.3% higher in the Republic than in the North—a gap that continues to grow.In terms of earnings, the difference is even more pronounced. Hourly wages in the Republic are 36% higher than in Northern Ireland. When using Modified Gross National Income—a more accurate measure of domestic economic activity that excludes multinational impacts—the Republic’s economy is 57% stronger per capita compared to the North’s GDP figures.
Demographics and Migration Trends
Population growth is more robust in the Republic, largely due to higher net migration rates in recent years, which have helped fuel economic expansion.The study also notes significant differences in education. In the Republic, education enrolment is higher across all age groups. Alarmingly, 30% of 15–19-year-olds in Northern Ireland were not in education between 2018 and 2022—a trend that the report describes as "extremely alarming."
Taxation, Health Spending, and Life Expectancy
While Northern Ireland residents pay lower income taxes on average (€2,980 versus €6,725 per capita in the Republic), the Republic allocates a much larger share of its government budget to healthcare spending—26.3% compared to 17.3% in Northern Ireland.The report also found that life expectancy is two years longer in the Republic than in the North.
Labour Market and Productivity
Northern Ireland has a higher proportion of its workforce employed in the public sector, at 29.2%, compared to 25.3% in the Republic.Although productivity in certain sectors like construction, agriculture, forestry, and fishing is higher in the North, overall labour productivity in the Republic is 2.5 times greater.
Shifts in Trade Post-Brexit
Trade patterns have also shifted in the years since Brexit. While the UK remains Northern Ireland’s primary trading partner, trade between the North and Britain has declined, whereas cross-border trade with the Republic has grown.Expert Commentary
Dr Adele Bergin, lead author of the report, emphasized that lower productivity levels in Northern Ireland are a key contributor to the widening gap in living standards.“We assessed a broad set of indicators—from labour market trends and income to demographics and well-being—and found a consistent pattern: the Republic is pulling ahead in almost every category,” she said.
Dr Bergin also acknowledged Brexit as a factor in changing trade dynamics, noting that increased trade between North and South has coincided with reduced commerce between Northern Ireland and the rest of the UK.
