Migrants more likely to work but face higher poverty rates, ESRI study finds

As of the first quarter of 2024, 77% of foreign nationals living here were in employment — compared with 73% of their indigenous counterparts. The unemployment rate for migrants was slightly higher, however, at 5.8% versus 3.5% for those native to Ireland.

Employment levels vary depending on place of birth, with European nationals born outside the EU displaying a lower likelihood of employment than Irish-born people. 

Those born in the EU, Asia, or the rest of the world had better levels than Irish nationals, while African nationals show broadly similar employment levels to Irish people

However, despite matching or bettering the Irish in terms of labour market participation, foreign nationals are significantly more likely to experience poverty compared to people born here — largely due to the higher housing costs experienced by migrants.

'A mixed picture'

The report said 37% of foreign nationals are paying more than 30% of their income for their living space, compared to just 9% for the Irish-born.

The higher poverty rates experienced by foreign nationals is primarily a trend affecting those originally born in eastern EU countries and outside the bloc, the study said.

Of those born outside the EU, 20% are likely to be considered "at risk of poverty" compared to 11% of Irish nationals.

'At risk of poverty' is when a household’s total income is below 60% of the national median income

Material deprivation, where a household is unable to afford two or more essential items as defined by the CSO, is more commonly experienced by people born in Britain, eastern EU, or outside the EU than those born in Ireland. The opposite is the case for those born in the western EU.

The report’s authors said their findings paint “a mixed picture”, with the positive outcomes experienced by migrants living in Ireland tempered by “some more concerning outcomes”.

They said that, despite migrants being significantly more likely to have a third level qualification — 59% of foreign nationals had tertiary education between 2021 and 2023, compared with 42% for Irish-born — the poverty levels reflected by the new study “may indicate that foreign qualifications are not receiving the recognition they deserve”. 

This could leave some migrants in a situation in which they are “overqualified” for their job.

Co-author Evan Carron-Kee, while noting the strong growth in African employment in Ireland as a “positive development”, said that nevertheless “persistent challenges remain”.

“Migrants are disproportionately impacted by the housing crisis and are much more likely to experience income poverty and deprivation. These issues require urgent policy attention,” he said.