, although the increases for women – up by almost 4 percentage points to 60 per cent – and younger and older workers are particularly large. central bank research shows that the participation expansion supporting employment growth is mostly explained by two factors : ( 1 ) a tighter labour market, which has boosted participation among younger age cohorts more sensitive to prevailing economic conditions ; and ( 2 ) longer run trend increases in participation for some groups. in relation to the latter, the analysis suggests that the higher levels of participation for women could be sustained, providing a boost to overall labour supply and supporting economic growth over the medium - term. the participation gains for under 25s could also be maintained as these cohorts are contributing labour alongside educational attainment, however, this activity is more sensitive to the economic cycle. we see similar changes in labour force participation in other euro area countries, which, when combined with falling unemployment rates, are contributing to higher employment rates in some countries such as france, the netherlands, italy and spain. will these labour supply effects persist? or will they fade as the pandemic - rebound eases? are these structural or cyclical changes? our current analysis of the irish data suggests that cyclical factors are dominating. however, the pandemic has induced a rapid and significant shift in long - established work practices, notably the increase in working from home in jobs where this is possible. and whilst we have yet to see any evidence of the increased incidence of working from home as being a dominant factor explaining the increase in labour force participation in ireland, we should consider some of the potential longer term effects of the greater use of flexible working. for example, we know that women are more likely to work from home than men. 18 in ireland, one - in - four workers now say they work ‘ mainly from home ’, up from just one - in - fourteen pre - pandemic. working from home is also more common in certain cohorts of the population : 40 % of workers aged 40 - plus say they work at least ‘ sometimes at home ’, compared with just 20 % of workers under 25 ; almost 50 % of workers in the top quartile of the wage distribution work at home, compared to 25 % of workers in the bottom quartile of the distribution. 19 the implications of more home - working go beyond labour supply. it could also matter for wages if the increased ‘ amenity value ’ of working from home is shared between employees and employers. what do

reported on a recent study by the earth commission7 that even at a 1. 5 degree increase in global temperature means more than 200 million people would be exposed to unprecedented temperatures and 500 million could be exposed to long - term sea - level rises. a horizon which once appeared distant, is now closing in fast – with decisions made in the here and now crucial to averting more disastrous outcomes. climate risks and the banking sector – rising expectations climate change and the transition to net zero is something which will affect the whole of society ; and while the financial sector is by no means the most exposed part of our economy, in many ways it is to the fore of the risks and opportunities these changes present. for bank balance sheets reflect the real economy which they serve. and so an existential challenge to one means an existential challenge to the other ; and a fundamental change to our economy naturally requires a fundamental change for its banks. the reality also is that we need the financial sector to take a leadership role in addressing this challenge – for without genuine engagement of the financial system we will go nowhere fast. jose manuel has spoken well on the eba ’ s roadmap for sustainable finance, and the good work they are doing. for my part i would like to touch on my own expectations for the banking sector both from my role as deputy governor of the central bank of ireland and as a member of the supervisory board of the ecb. while some have talked of mission, or indeed mandate, creep, in fact embedding climate - related and environmental risk management in the banking system goes to the very heart of what we do. as supervisors our fundamental expectations are that banks identify and effectively manage the risks you are exposed to. as is increasingly clear, climate risk, both physical and transition, are no longer hypotheticals – but rather realities of our every day. furthermore, these risks will only continue to grow and crystallise throughout the lifetime of your banking books, as the effects of climate change and the transition to a new world play out. 8 for this reason, exposure to climate - related and environmental risks is a supervisory priority of both the central bank of ireland and the ecb. we are fully aware that integrating such risks into risk management processes is no easy task – and while it should be led by individual banks, it needs to be fostered by regulators, both through supervisory dialogue and the highlighting of best practices. 9 in this regard, 2022 saw some important supervisory exercises conducted at both a