An advisory body has cautioned that Ireland’s population faces the risk of what it described as a “vicious downward cycle” as birth rates continue to decline.
The warning appears in a report by the National Economic and Social Council (NESC), which examined recent demographic changes across Ireland, reports RTE.
The report calls on the Government to start planning now for the potential negative consequences of such a downward cycle before it becomes too difficult to undo.
It states that Ireland’s demographic profile is experiencing rapid and far-reaching change as birth rates fall and the population continues to age, reports RTE.
This shift means an ageing and shrinking population will place increasing strain on society, with fewer workers and reduced tax revenues available to fund infrastructure and public services.
However, one of the report’s authors, Dr Gráinne Collins, said that while these changes are unavoidable, they can be managed and need not be destabilising, reports RTE.
The report sets out the possibility of a “virtuous cycle”, provided Ireland begins urgent economic and social preparations for these demographic shifts.
It urges the Government to ring-fence funding to create a buffer against rising future costs, without resorting to service cuts or tax increases, reports RTE.
The report also recommends pension reform, a proactive migration strategy, balanced regional development, stronger family support policies and increased workforce participation.
It concludes that by addressing these challenges directly, future generations could inherit opportunity rather than crisis, reports RTE.
NESC Director Dr Larry O’Connell said the demographic patterns Ireland is experiencing are mirrored across much of Europe.
“While Ireland has undergone remarkable change in recent decades, it would be unrealistic to assume this pace can continue indefinitely,” he said, reports RTE.
“Demographic trends will shape living standards, labour markets and the sustainability of public finances for many years to come, and a rapidly ageing population will place growing pressure on our care systems,” he said.
Dr O’Connell added: “Long-term planning is therefore essential as we confront these profound shifts, reports RTE.
“With a positive and ambitious approach, Ireland can ensure that demographic change becomes a springboard for a more cohesive and inclusive society,” he said, reports RTE.
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