In the span of a single generation, Ireland has undergone a dramatic transformation. Just 30 years ago, the private lives of Irish citizens were governed by restrictive laws that today feel like relics of a distant past.
From the decriminalisation of homosexuality in 1993 to the legalisation of divorce in 1996, and finally to the historic 2015 marriage equality referendum, we didn’t just ‘catch up’ with the world; we became a global leader in empathy and progress.
This journey created ‘Brand Ireland’ as a country where anyone can belong, regardless of background, creed, or identity. For the business community and society at large, this social cohesion was a reliable background condition that allowed markets to function and enterprises to thrive.
However, that cohesion is now facing a structural threat. A toxic cocktail of xenophobia, anti-LGBTQ+ hostility, and a generalised culture of grievance is beginning to sour the climate.
For decades, we operated under the comfortable assumption that our own history of emigration, with more than 10 million people having left our shores since 1800, gave us a unique ‘Irish exceptionalism’. We believed we were inherently immune to the xenophobia seen elsewhere.
Today, that illusion has been shattered. The growing undercurrent of hostility is no longer a fringe issue; it is a threat to our national wellbeing.
Individuals in the LGBTQ+ community report renewed anxiety in public spaces, and people of colour face harassment that makes a simple daily commute feel like a risk. This is not just a policy problem — it is a cultural erosion that narrows the lives of those living here and threatens the very openness that defines us.
To fix this, we must be honest: social unrest rarely emerges in a vacuum. It is often the product of the widening gap between the ‘haves’ and ‘have-nots’. Ireland’s rapid growth has not been felt equally. When housing, healthcare, and transport fail to keep pace with change, frustration becomes a fertile ground for division.
The mobile talent and newcomers who staff our hospitals, build our homes, and fuel our tech hubs are often unfairly blamed for systemic failures in public planning. But in a modern knowledge economy, human capital is the primary driver of value. When the social environment becomes hostile, the economic machinery begins to grind. Our economic model works because we are an open trading nation, but our society works because we look out for one another.
Justice minister Jim O’Callaghan at Government Buildings as proposals on stricter migration rules were brought to Cabinet in November.
We must move the conversation beyond what migrants give to the exchequer and focus on what they add to our country. Diversity is not merely an economic metric; it is a cultural accelerant. It is found in the vibrancy of our main streets, the multi-ethnic composition of local football clubs, and the varied perspectives in our classrooms.
True social cohesion is the glue that holds different people together in pursuit of a common good. If we allow a reputation for hostility to take root, we don’t just lose workers, we lose the richness of a pluralist society. We risk returning to a narrower, more fearful version of ourselves, the very version we spent 30 years trying to outrun.
The argument for inclusion is not just moral, it is a necessity, a matter of national survival. According to the Department of Finance’s Future Ireland report, our aging population is a ticking clock. We are moving toward a reality where there will be only two workers for every one pensioner. By 2035, the domestic-born labour force is expected to enter a structural decline, and the care sector is projected to see a 60% increase in demand by 2040.
There is a risk we might mistake a cooling labour market for a reason to retreat from our values. In the first 10 months of 2025, employment permits issued fell to 25,600, a 23% drop (7,450 permits) from the previous year. While some see this as a chance to tighten borders, this view is dangerously short-sighted. We will find ourselves not only poorer, but lonelier, less able to care for our elderly or innovate for our young.
The decline is largely in sectors clearing post-pandemic backlogs. Conversely, construction defied the trend, showing an increase of 475 permits. This proves our most critical goals, housing and infrastructure, remain tethered to international expertise and a welcoming environment.
International talent remains a primary engine of innovation and productivity. Any policy shift or public sentiment that undermines Ireland’s reputation as a welcoming destination represents a significant risk to future prosperity, our values, and our collective quality of life.
We must address the genuine grievances of those who feel the system is failing them, but we must do so without sacrificing the openness that defines modern Ireland.
The choice for 2026 and beyond is simple: do we succumb to the politics of division, or do we double down on the empathy and cohesion that made us a global leader? Our prosperity, our values, and our very quality of life depend on the answer.
Through Ibec’s ‘Open for Business’ campaign, the business community is taking a stand, not just because the economic stakes are so high, but because it is the right thing to do. Protecting our humanity is not a distraction from economic policy; it is the heart of it.
Kara McGann is head of social policy at Ibec