Record employment milestone for Mid-West region risks being undermined by shortage of accommodation.
The Mid-West region has achieved record-high employment figures while simultaneously facing an escalating housing crisis that threatens future growth, according to a new economic report.
Limerick Chamber’s 2025 Mid-West Economic Insights (MWEI) report reveals employment in Limerick, Clare, and Tipperary has reached an all-time high of 279,000 workers, with unemployment sitting at just 3.4%.
“Without targeted investment in housing, transport, and indigenous enterprise, the Mid-West risks being left behind”
However, this economic success is being undermined by soaring housing costs, with home prices increasing by 44% across the region over the past five years.
“The Mid-West is thriving in employment and enterprise, but our economic momentum is at risk if we fail to act decisively on housing, infrastructure, and skills,” said Seán Golden, chief economist and director of Policy at Limerick Chamber.
The annual report, compiled by the Chamber’s in-house policy unit, is Ireland’s only regional economic publication of its kind and provides data on housing, employment, education, transport, and logistics across the three counties.
A threat to economic growth
County Limerick alone has seen housing prices rise by nearly €70,000 (22%) in five years. While housing completions increased in Limerick (+29%) and Clare (+34%), they fell by almost 5% in Tipperary.
The report highlights a significant regional disparity in affordable housing delivery, with just 5.4% of ‘affordable’ homes delivered in Limerick compared to 61% in Dublin. Nearly 60% of housing purchases across Limerick in 2023 were by non-household entities, compared to a national figure of almost 42%.
Rental markets show even more dramatic increases, with Limerick city rents soaring by almost 77% over five years, while Clare experienced increases exceeding 60%.
Despite Limerick completing over 1,000 homes in 2024, analysis by the Housing Commission suggests the city needs between 2,000 and 4,300 homes to meet current demand.
Employment growth and international talent
The region continues to attract international workers, accounting for 8.3% (1,905) of all national work permits issued. IDA-supported employment in the Mid-West grew by 2.6% last year to over 27,000 employees, bucking the national slowdown trend.
“The report also welcomes the continued trend of decreasing live register figures, including youth unemployment,” Golden noted.
Education and infrastructure challenges
While the region’s educational institutions remain strong, the report indicates third-level enrolments among Irish students are declining, though this has been partially offset by an increase in international students. Apprenticeships have surged to over 2,500 for the first time.
Transportation infrastructure shows mixed results, with Shannon and Cork Airports increasing their pre-pandemic passenger numbers, though Dublin Airport still dominates with 85% of all national passengers. Limerick recorded 3.6 million public transport journeys in 2023, but the report flags concerns about a drop in licensed bus operators and limited metropolitan rail options.
The logistics sector continues to lose ground, with the Mid-West’s national share of road freight activity declining from 14% in 2010 to just 9% in 2022. Only 3.1% of new goods vehicles licensed nationally in 2024 were registered in Limerick, compared to 41.9% in Dublin.
Port potential remains untapped
Shannon Foynes Port remains a bright spot, handling over 7.6 million tonnes of dry bulk—more than any other Irish port.
“Given Shannon Foynes’ status as a national logistics hub, we need to ensure that Ireland expands it beyond this, and follows in the footsteps of France, by investing in the port to harness offshore renewable energy,” Golden emphasised.
The economist concluded with a strong call for Government action: “Without targeted investment in housing, transport, and indigenous enterprise, the Mid-West risks being left behind. Government must move swiftly to implement regional commitments under Project Ireland 2040.”
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