48. Deputy William Aird asked the Minister for Enterprise, Tourism and Employment if his Department has carried out an analysis of the effect of rising labour costs on employment levels and investment decisions within the retail sector; and the way in which concerns regarding the future viability of jobs in regional retail businesses are being addressed. [67451/26]

The Government recognises that rising business costs, including labour costs, have placed significant pressure on firms, particularly SMEs, in recent years. My Department continues to closely monitor cost trends across the economy and is taking significant action to support enterprise resilience and competitiveness.

It is also important to recognise the significant contribution of  consumer-facing labour-intensive sectors to employment, particularly in regional economies. In the second quarter of 2026, wholesale and retail employed approximately 311,000 people, while accommodation and food services employed a further 189,000. Together, these sectors accounted for almost 500,000 jobs, or around 18% of total employment across NACE sectors. Around three-quarters of this employment was located outside Dublin, with approximately 372,000 people employed across the two sectors in the regions.

In recognition of the challenges facing businesses, the Government agreed last year to extend the timeline for progression to a Living Wage from 2026 to 2029. This adjustment provides additional certainty for employers while maintaining the commitment to achieving a Living Wage equivalent to 60% of median hourly earnings. The Government's approach to future minimum wage increases will continue to be informed by the recommendations of the independent Low Pay Commission and by prevailing economic conditions.

The Government has also delivered on a number of Programme for Government commitments aimed at reducing the cost of doing business. These include the establishment of the Cost of Business Advisory Forum and the publication and ongoing implementation of the Action Plan on Competitiveness and Productivity.

The Cost of Business Advisory Forum's final report, published in August, contains 63 recommendations aimed at easing business costs, particularly for SMEs. These recommendations address a range of cost drivers including energy, insurance, planning and regulatory costs, banking and payment services, legal costs, water services and reporting requirements. Key recommendations include examining measures to reduce energy costs, promoting greater competition in banking services, and pursuing exemptions for SMEs from Enhanced Reporting Requirements.

The Action Plan for Competitiveness and Productivity, published in September 2025, contains 85 actions designed to strengthen Ireland's competitiveness and support enterprise growth. Among the actions included in the Action Plan is the introduction of a Government-wide "Red Tape Challenge" to reduce regulatory burdens, and measures to support SME digitalisation and adoption of new technologies, including artificial intelligence. The Action Plan also commits all Government Departments to strengthening application of the SME Test, ensuring the likely impact of proposed policy and legislative measures on SMEs is fully considered during policy development.

More broadly, it is important to note that labour market conditions remain strong, with the unemployment rate standing at 5.0% in August, compared with 4.9% a year earlier, which is consistent with near full-employment conditions.

I would like to assure that the Government and my Department have been and are committed to backing businesses and will ensure the actions aimed at supporting small businesses in the Programme for Government are implemented in an effective and timely manner.