Government to prioritise immigration over boosting births as response ageing population

8th November 2025

The Finance Minster has dismissed policies to boost Ireland’s fertility rate in response to a report detailing the demographic and financial challenges of a rapidly ageing population and a fertility collapse.

The country faces a surge in the number of older people as a proportion of the population, falling tax revenues and increased fiscal deficits, as the fertility rate has fallen to 1.5, well below the 2.1 replacement rate, according to the new report by the Department of Finance.

‘Future Forty’ outlines potential scenarios between now and 2065, by which time almost half of the State’s expenditure will be on age-related spending including healthcare, long term care and pensions.

The report says there will be a “stagnating labour force suppressing economic growth”, while advocating that, “Continued inward migration will be vital to maintain growth in the labour force.”

At the launch in Dublin on Tuesday, Finance Minister Paschal Donohoe was asked whether Ireland should pursue policies to raise birthrates, but he replied that the number of children people have is “a choice for families”. This is despite evidence showing people are having fewer children than they want.

He added that the Government’s focus was on affordability and access to daycare rather than measures to encourage higher birth rates.

Chief Economist John McCarthy claimed: “Pro-natalist policies have been shown to have virtually no impact” in other countries.
The Iona Institute
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