A core challenge to the economy over the next five years will be to increase the labour supply, according to official papers drawn up for a new national economic dialogue.

A paper prepared for the talks by the Department of Public Expenditure and Reform and the Department of Finance says this could be achieved by attracting back Irish emigrants, increasing the participation rate in the workforce, particularly by women, and "activating the unemployed".

The paper says the availability and cost of childcare is a consideration for many people, and there is a need to examine how resources should be prioritised “to ensure that the services provided to children deliver positive outcomes and that barriers to workforce participation are removed”.

Childcare

“Over the last decade or so there has been a major investment in childcare infrastructure and the introduction of the universal pre-school year and targeted childcare schemes.

“The improving economic situation and employment opportunities can increase pressure on the existing infrastructure,while the cost of childcare provision is an important issue for parents.”

The paper raises a number of questions for debate in the forthcoming talks, including how childcare issues should be addressed within the labour market.

It also asks what new sectors should be targeted for investment, what are the main barriers to job creation, and what other approaches, in additional to existing initiatives, can be adopted to get people back to work?

Economic crisis

The report says that seasonally adjusted employment peaked in the first quarter of 2008 at 2.16 million before falling during the economic crisis by 327,000 to 1.83 million in the third quarter of 2012.

It says net migration between 2009 and 2014 in the 15-24 age group was estimated at more than 80,000, while in the 25-44 age cohort the estimated figure was 64,200.

It says participation rates also reduced during the crisis – with the male participation rate falling more sharply from a higher base.

“The female participation rate declined from 54.3 per cent in quarter one 2008 to 52 per cent in quarter one 2015. The male participation rate declined from 72.8 per cent in quarter one 2008 to 67.1 per cent in quarter one 2015.”