Following two of the busiest years in memory for recruitment in Ireland, 2023 marked a correction due to companies over-hiring in recent years. We also saw mass layoffs, especially from tech giants like Amazon and Meta. Most employees who were laid off were still able to take advantage of low unemployment rates and talent shortages, making it relatively easy to find their next role.
These positive hiring trends, however, are contrasted against the ongoing challenge faced by 81% of Irish businesses in finding talented individuals. With a low unemployment rate of 4.1%, employers are finding it particularly difficult to source skilled candidates for their open positions. Employers in Ireland report that they are equally likely to hire temporary and permanent staff when considering headcount expansion over the next 12 months.
In 2023, salaries have been increasing but are struggling to match high inflation rates. However, day rate contracts have maintained their pay levels without any noticeable increases. At the start of this year, rising costs and employee retention were key issues, and these concerns will likely persist into 2024, impacting salary budget planning.
Although large American multinationals in Ireland have implemented many hiring freezes, local companies at all levels continue to grow at a steady rate, and this is also true for the main consulting firms. The general sentiment is one of cautious optimism for employers moving into 2024. With talent shortages still prevalent in areas like tech and finance, employees are confident there are enough options available.
Forty-three percent of Irish companies are planning to hire new staff in the fourth quarter of 2023, and hiring activity is expected to steadily pick up in 2024. With the growing issue of talent draining overseas, competition for the best talent will remain strong. Workers in the tech sector in Ireland continue to enjoy the highest annual earnings in the country.
We surveyed finance and technology professionals to find out what salary increases they have achieved, what they are expecting, and, importantly for employers, what they plan to do if those expectations cannot be met. We hope this information will help our clients make more informed decisions about talent retention and attraction.
It was announced in Budget 2024 that the minimum wage will increase from 1 January 2024. The national minimum wage for people aged 20 and over will rise by €1.40 to €12.70 per hour. We expect this increase to be reflected at all levels, with an average 4% increase in salaries across the board.
Splash