Following 2023’s correction after companies over hiring in 2021 & 2022, there was still a knock-on effect into 2024 with many companies still making redundancies and also hiring freezes.
Tech has still been slow to bounce back but there are certain areas like Data Analytics, AI and Cyber that are still growing. There has also still been a high demand for strong accounting and tax professionals in Ireland this year and that will continue into 2025.
AI adoption across Ireland is sparking change in an already rapidly evolving skills landscape, and we’re seeing positive labour market activity across the economy as a result of growing economic confidence. However, hiring demand is being driven by hard-to-fill roles where demand far outpaces supply, with 90% of businesses in the tech space reporting difficulty filling roles.
On a positive note, employment continued to grow in 2024, with 70,800 jobs created in the year to Q2 2024 and total employment now stands at 2.74 million.
Employment outside of Dublin increased by 43,600 in the year to Q2 2024 (+2.3%) and full time employment was up 62,300 (+3.0%) year on year in the second quarter, while part time employment was up 6,900 (+1.2%) year on year. Employers in Ireland report that they are equally likely to hire temporary and permanent staff when considering headcount expansion over the next 12 months.
Ibec, the group representing Irish businesses, revealed that 84% of businesses are planning to increase pay in 2025, with respondents forecasting an average increase of 3.4% across all business sectors. The report also indicates that businesses in Ireland had an average staff turnover rate of 8.3% in 2024, down slightly from 9.7% in 2023.
Additionally, 41% of respondent companies plan to increase their headcount in 2025. However, the average increase in overall headcount is expected to decline from a peak of 9.4% in 2024 to 7.2% in 2025. 85% of respondents increased basic pay by an average of 4.1% in 2024 while 84% of employers are planning to increase pay in 2025.
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