Economic impact of the COVID-19 pandemic in the Republic of Ireland
The COVID-19 pandemic has had a deep impact on the Irish economy, leading it into a recession. Essential public health measures announced by the Irish Government to contain the spread of COVID-19 resulted in the largest monthly increase in unemployment in the history of the Republic of Ireland during March 2020.[1][2] By 24 April, there were more than one million people in receipt of support interventions to the labour market, including those in receipt of the COVID-19 Pandemic Unemployment Payment and the COVID-19 Temporary Wage Subsidy Scheme.[3][4] While there were job losses in all sectors, individuals working in tourism, hospitality, food and retail have seen the largest job losses.[5][6]
Agriculture[edit]
In late-March 2020, all marts were shut as part of measures introduced to combat the spread of COVID-19. However, Minister for Agriculture, Food and the Marine Michael Creed said the Department of Agriculture, Food and the Marine would permit livestock marts to reopen for limited reasons if social distancing could be adhered to. Thus, another first for Ireland, a virtual mart occurring in County Meath, and prompted by pandemic restrictions on social gatherings. Irish agri-software company, Livestock-Live (based in Mullingar), provided the live streaming technology to facilitate the online bidding of farmers, having first introduced its cameras to Carnaross Mart in January 2018 and completed testing of them the day before marts were shut in 2020, giving the Meath mart the advantage over others.[7]
By the beginning of April, at least two dozen agricultural shows had been cancelled—among these were events scheduled for Athenry, Athlone, Ballinrobe, the Ballivor Horse Show, Ballyfoyle, Bandon, Bannow/Rathangan, Belgooly, Carnew, Charleville, Corrandulla, Dungarvan, Ennistymon, Gorey, Midleton, Newmarket-on-Fergus, Nobber, Oldcastle, Riverstown, Scarriff, Tydavnet, Tullamore and Westport.[8] 8 May brought the cancellation of the 2020 National Ploughing Championships, due to have taken place in County Carlow in mid-September.[9][10]
On 12 June, the Government of Ireland approved a €50m support package for beef farmers who experienced significant difficulty arising from the economic impact of COVID-19.[11][12]
On 14 May 2021, the 2021 National Ploughing Championships, due to have taken place in County Laois in September, was cancelled for a second year due to uncertainty over COVID-19 restrictions.[13] On 15 September, the National Ploughing Championships went ahead in Ratheniska, County Laois on a much scaled-back level, with the trade exhibition element and the world ploughing contest cancelled.[14]
Finance, businesses and the economy[edit]
On 16 March 2020, Minister for Employment Affairs and Social Protection Regina Doherty announced the COVID-19 Pandemic Unemployment Payment, which would be available for six weeks.[15]
On 18 March, banks—together with Minister for Finance Paschal Donohoe—announced a range of measures, including providing working capital, payment breaks and deferred court proceedings.[16]
On 19 March, Regina Doherty announced that all welfare would be distributed each fortnight instead of the traditional weekly, so as to limit the number of people gathering in post offices.[17]
On 24 March, the Temporary COVID-19 Wage Subsidy Scheme was announced for a twelve-week run beginning on 26 March.[18] This allowed employers maintain responsibility for paying employees during the pandemic with the intention of maintaining the employer-employee relationship and ensure that employees continued to be registered with their employers, so that they will be able to get back to work quickly after the pandemic.[19] The Temporary COVID-19 Wage Subsidy Scheme replaced an earlier COVID-19 Employer Refund Scheme.[20][21]
By early April, the Central Statistics Office (CSO) announced that a figure equivalent to more than one tenth of the country's population were unemployed.[22][23] A spokesman for Goodbody Stockbrokers described it as "unprecedented".[24] By the following week, the numbers receiving income supports had increased by 40% from the previous week's total.[25]
The Revenue Commissioners announced that tax exiles, normally permitted to spend 183 days of each year within Ireland, could stay for longer in 2020—without affecting taxation—if they could provide evidence that the virus prevented them from leaving.[26]
On 15 April, the Central Bank of Ireland published two reports highlighting a significant reduction in cash and ATM usage in the country.[27]
On 8 May, Central Statistics Office (CSO) figures showed an unemployment rate surpassing 28%, the largest in two decades.[28]
On 9 May, Minister for Business, Enterprise and Innovation Heather Humphreys announced a "Return to Work Safely Protocol" which was published online to support employers and workers to put measures in place that would prevent the spread of COVID-19 in the workplace, when the economy begins to slowly open up.[29][30]
On 15 May, Minister Humphreys announced details of a new €250m "Restart Grant" which would give direct grant aid of between €2,000 and €10,000 to small businesses to help them with the costs associated with reopening and re-employing workers following the COVID-19 closures. The scheme would open for applications on 22 May.[31][32][33]
On 22 May, the Government had signed off on €6.8 billion in extra funding for the Department of Employment Affairs and Social Protection, as it was due to reach this year's spending limit early the following month.[34]
On 28 August, Minister for Finance Paschal Donohoe encouraged employers to register for the Employment Wage Subsidy Scheme which replaces the Temporary COVID-19 Wage Subsidy Scheme from 1 September 2020.[35] The scheme provides a flat-rate subsidy to qualifying employers whose turnover has fallen 30% based on the numbers of eligible employees on the employer's payroll, including seasonal staff and new employees.[36][37] On 1 September, over 22,100 employers registered for the new Employment Wage Subsidy Scheme which replaced the Temporary COVID-19 Wage Subsidy Scheme.[38]
On 7 September, it was announced that Ireland was now officially in recession after the economy shrank by 6.1% between April and June as the impact of COVID-19 brought the largest quarterly drop on record, following new figures published by the Central Statistics Office.[39][40]
On 19 October, the Government confirmed that the COVID-19 Pandemic Unemployment Payment would be restored to €350 for anyone who was earning more than €400 before they lost their job due to COVID-19 restrictions.[41][42]
On 9 February 2021, the Government announced funding of €160 million in additional supports for businesses affected by COVID-19.[43][44]
The COVID-19 Pandemic Unemployment Payment was repeatedly extended, until it closed to new applicants on 22 January 2022,[45] and officially ended on 25 March 2022.[46]