Beyond the Cities: The Need for Balanced Regional Development

The latest CSO County Incomes and Regional GDP 2022-2023 report highlights economic disparities across Ireland, with significant gaps in regional productivity, household incomes, and employment opportunities. The data emphasises the urgent need for targeted policies to ensure balanced economic growth, equitable investment, job creation, and improved regional development strategies.

 

Key Findings

• Dublin continued to have the highest disposable income per person nationally at €32,393 in 2023, 14% higher than the national average of €28,370, having risen a further 1.3% from 2022. This was followed by Cork at €29,876 and Limerick at €29,491.
• Longford recorded the lowest disposable income per person nationally in 2023 at €22,251.
• Over a third (35%) of all employed persons in the state worked in Dublin in 2023, while 12% worked in Cork and 6% in Galway.
• Gross Domestic Product (GDP) in Dublin and the South-West (Cork and Kerry) continued to rise compared with other regions. Dublin City and County recorded the highest GDP in the state at €248.3 billion, followed by the South-West region at €123.3 billion.
• The Information and Communication sector was the largest contributor towards GDP in Dublin, while the manufacturing industry contributed most towards GDP in the South-West and Mid-West. The public sector remained the strongest contributor to GDP in the Border and Midlands.

Ireland’s economic growth remains unevenly distributed. The growing divide between urban centres and rural areas could lead to increased migration to cities, straining housing and public infrastructure further, while leaving rural communities without sustainable employment.

Challenges Facing Regional Economies

1. Investment Gaps – Public and private sector investments remain concentrated in urban hubs.
2. Infrastructure Deficits – The lack of housing, inadequate transportation, and insufficient public services including (broadband, childcare and healthcare) create additional barriers to growth, especially in rural areas.
3. Employment Disparities – Rural economies are often reliant on low-wage, seasonal industries such as agriculture and tourism, leading to job insecurity and limited career progression.
4. Rising Cost of Living – Lower wages in rural areas do not always offset higher costs, particularly for families. The Minimum Essential Standard of Living (MESL) shows that rural households with children face additional weekly costs of €131–€173 compared to urban households.
5. Skills Gaps and Automation risks – In order to access employment, workers require the right skills. ‘Our Rural Future’ recognises the importance of ongoing skills development and lifelong learning to rural development. Further, digital transformation will significantly have an impact on employment. A report on Wellbeing in the Digital Age found that nearly half of the labour force will be impacted by changes to their jobs as a result of automation by 2040.

Hence, balanced regional development is essential to achieve viable, sustainable communities. Social Justice Ireland believes that policy should:

• Ensure that investment is balanced between the regions, with due regard to sub-regional areas;
• Ensure rural development policy is underpinned by social, economic, and environmental wellbeing;
• Ensure that development initiatives resource areas which are further from the major urban areas to ensure they do not fall further behind;
• Prioritise the continued roll out of high-speed broadband to rural areas;
• Invest in an integrated, accessible and flexible rural transport network;
• Invest in human capital through targeted, place-based education, and training programmes, especially for older workers and those in vulnerable employment;
• Prepare for the potential impact of technology on the future of work by investing in the regions and ensuring the necessary social, infrastructural, and human capital supports are in place to manage any upheaval;
• Provide integrated supports for rural entrepreneurs, micro-enterprises, and SMEs.

Without proactive and balanced economic policies, Ireland risks deepening regional inequalities. Supporting rural households with social and economic supports and addressing low-paid, part-time, and seasonal work must be central to the national strategy. Achieving inclusive economic growth and sustainable local economies will require coordinated investment in infrastructure, skills, and community-led initiatives.