Irish economy struggles with lasting pandemic effects

Five years after the initial Covid-19 lockdown, Ireland still faces challenges from the pandemic. Issues such as children's wellbeing, rising house prices, and changes in work practices continue to shape the economy. At the beginning of the pandemic, governments moved quickly to respond to the situation. Lockdowns were implemented due to the fast-spreading virus. Most Covid-19 related deaths occurred among seniors aged 75 and older, impacting how decisions were made about managing the crisis. Recent studies indicate that school closures had negative effects on many children. While some adults view the pandemic as a distant memory, others deal with long-lasting health issues. Economically, the lockdowns impacted the EU, leading to a 6% drop in output in 2020. In Ireland, household spending fell nearly 10%. Unemployment rose significantly as people could not engage in typical activities like shopping or traveling. However, government actions helped cushion the blow. Support measures, including pandemic unemployment payment, were introduced to assist those affected by job losses. Overall government borrowing surged, reaching nearly 9% of national income in Ireland in 2020. With fewer opportunities to spend, many Irish households saved more money. Their typical savings rate doubled during the pandemic years. As life returned to normal in 2022, some of these savings fueled demand in the housing market, contributing to rising home prices. The increase in available cash for deposits ended up pushing prices higher, making housing less affordable. Workplace dynamics have also changed. Working from home became a requirement during lockdown, and now about 35% of Irish workers do so at least partly. There are varying reports about how many hours employees work compared to what employers observe. Employees might report working less due to no commute, while employers see normal hours. This discrepancy raises questions about productivity in remote settings. Spontaneous interactions in the office that often lead to new ideas and solutions are missing in remote settings. Important discussions still happen during virtual meetings, but informal communication that fosters collaboration is lost. As new team members join organizations without in-person interactions, creating a strong work culture becomes more challenging. Over time, the impact of this shift on productivity may become clearer.