Labour market adjustment in the Irish regions, 1988-2005

Following a preliminary discussion of various aspects of the Irish "regional problem", this paper examines the evolution of employment shares, unemployment rates, wage levels, and interregional commuting patterns in the regions of the Republic of Ireland since the 1980s. The evidence shows that all the regions participated in the unprecedented employment boom of the 1990s and that regional disparities in labour market performance fell markedly. Regional unemployment rates seem to adjust quickly to changes in the national rate. The reasons for the relatively successful experience of the Irish regions are discussed. It is argued that there is a need to re-examine the current concern with the regional distribution of economic activity in light of the paper's findings.