The massive emigration from Ireland in the second half of the 19th century was driven by the much higher standard of living available elsewhere. Wage rates in Ireland were far below those in Britain in 1900. As labour supply fell in Ireland through emigration, wage rates here gradually rose towards British rates, but remained below them until 1970. With higher wages in the UK, emigration to Britain remained significant through much of the 20th century. The destinations chosen by emigrants from Ireland reflected the expected potential for a better way of life in their new home. The fact that most Irish people spoke English – by 1851 fewer than 5 per cent spoke Irish only – was a huge benefit to Irish emigrants in the alternative labour markets available. It’s no accident that the primary destinations for Irish emigrants were Britain, the US and British colonies. A prosperous Argentina around 1900 attracted a lot of Italian emigrants but the language barrier meant it attracted few Irish emigrants. In today’s world, language remains an important factor affecting the pattern of population movements within Europe, and between Europe and the rest of the world. Australia and New Zealand, although half way across the globe, attract more Irish emigrants than nearby France or Spain. Ireland’s economic success over the past half century, and its appeal to multinational firms, has benefited from attractive corporation tax rates and the rapid rise in education levels. While difficult to quantify, the English language has also played a key role in this success story. It’s been a factor in attracting both senior management to locate here and in tapping into a local and international skilled workforce.Another EU country with a global language, Spain, has grown more rapidly over the past decade than other large EU economies. Spain can attract skilled and unskilled workers from Latin America to meet its demand for labour. While being English-speaking is obviously an attraction for US-owned firms, senior managers coming here from countries such as Germany or the Netherlands are also accustomed to working in English. English has become the main second language for other nationalities, particularly for those with advanced qualifications, and the world’s leading business language. Companies locating here know they can attract both local and international talent to work in our English-speaking environment. Across Europe, where many people can speak at least two languages, increasingly English is the chosen second language. This was particularly true for the former communist countries after 1990. They switched immediately from Russian to English as their second language, rather than to German or French. [ Much of what Irish emigrants prize in Australia can be found in Europe, but lazy logic gets in the wayOpens in new window ]This had consequences, with a major influx of labour to Ireland and Britain from former eastern bloc states on their accession to the EU.More recently, with the high cost of living in Ireland and as eastern bloc economies prospered, much of the immigration from within the EU has eased. Even with much lower salaries, Poles or Latvians are often better off working at home than in Ireland. It is only for highly paid jobs that Ireland remains attractive. The changing national composition of the Irish labour force has seen rapidly rising numbers of Indians working here, while the share of Poles has declined. A former colony, in India English is either the first or second language for many graduates. The highly skilled nature of our Indian workforce, often working in IT or in healthcare, is reflected in their earnings. On average, Indian men here earn 4 per cent more than Irish men, while Indian women earn 17 per cent more than their Irish counterparts. [ Six out of ten new jobs filled by foreign nationals - but what happens now as employment slows?Opens in new window ]Population movement within the EU has also served to reduce wage differentials between countries for some sectors, especially those for jobs where language fluency is less of an issue. So today, earnings in the hospitality sector in Lithuania are close to those in Germany – only a limited German vocabulary is needed to work in fast food or a hotel in Berlin. However, Lithuanians working in professional services earn much less at home than their counterparts in Germany, as fluency in German is essential to work in Germany in this sector. ESRI research has shown that migrant workers in Ireland with more limited English experience an earnings penalty, which eases as their fluency improves. On the downside for Ireland, speaking a global language has made us complacent. As the US has become a less reliable trade partner, we need to seek markets elsewhere, and speaking the customer’s language opens doors. Better language skills can be the key to unlocking wider collaborations with other countries.