The labour party has a long record of being in governmnet. It first entered government in 1948 as part of a coalition with Fine Gael, Clann na Poblachta, Clann na talmhan and the national Labour party .William Norton the then leader of Labour took the post of Tanaiste. Labour also served in government from 1954-1957, 1973-1977, 1981-1982 & 1982-1987.

In 1982, Dick Spring took over the leadership of the party. A young leader, Spring set about unifying the party and giving it a new emphasis. He has played a prominent role in the Northern Ireland peace process. In 1992, the leader led a rejuvenated party to a hugely successful electoral win. Labour won nearly 20% of the vote and was on the verge of becoming the second largest political party in the country. Two years earlier the party rejoiced in the victory of Mary Robinson in being elected the first female president of Ireland. Robinson (ex-member of the party) ran as an independent but was supported by Labour.

After the 1992 election, Labour entered government in coalition with Fianna Fail. During its term of office, Labour ministers were responsible for the enactment of many liberal statutes also the government as a whole implemented economic policies that were to fuel the Celtic tiger. After the break down of the coalition Labour became a member of the Rainbow coalition, a coalition which aided by the positive economic climate began to increase social expenditure in areas like education and health. In the 1997 General election, Labour vote dropped significantly from the high of 1992. The party's current share of the vote is approximately 14%. In 1998, Dick Spring retired as party leader. Ruairi Quinn was selected to replace Spring, and is the present leader of the party. In January of this year the Labour party merged with Democratic left, with Pronnsias DeRossa being appointed president of the Labour party