Updated / 18th March 2026

An Employment and Recruitment Federation report suggests that despite Ireland’s positive hiring market, progress is being stalled.

New research published by the Employment and Recruitment Federation and supported by Icon Accounting has highlighted how the skills shortage in Ireland is starting to delay further growth for organisations, despite some positive numbers. 

The Irish Labour Monthly Monitor report found that more than half of contributing recruiters reported an increase in permanent vacancies and 43pc said there is higher demand for contract roles. 41pc reported increased temporary vacancies and more than half also said that they expect vacancy levels to rise further over the next three months.

But despite the positive hiring market, the research also indicated that Ireland’s talent pool is not keeping pace. Of those who contributed their information, two thirds of recruiters said that they expect no improvement in the availability of applicants with suitable skills. The report said this points to a widening gap between what employers need and what the market can currently provide. 

Commenting on the figures, Siobhán Kinsella, the president of the Employment and Recruitment Federation, noted that this is the real challenge at present: not a lack of jobs, but a shortage of the right skills. 

She said: “What this data shows very clearly is that Ireland does not have a jobs problem. It has a skills problem. Employers are still hiring. Recruiters are still filling roles. But finding people with the right experience and qualifications is getting harder, and that is now starting to hold businesses back.

“This is still a strong jobs market, but it is becoming harder and more expensive for employers to hire. Businesses are dealing with higher costs, continued uncertainty and fast-changing requirements at the same time.”

She explained that if Ireland wants to maintain its momentum, there needs to be a serious commitment to training, reskilling and workforce readiness. “We cannot keep talking about strong employment numbers if employers cannot find the people they need to fill the roles that are there,” she said. 

Competing needs

The report noted how in February, Ireland’s unemployment rate stood at less than 5pc, resulting in a landscape where many employers find themselves competing for a limited pool of experienced workers, across sectors such as technology, engineering, healthcare, logistics and financial services, among others. 

Youth unemployment figures were also shown to be comparatively high, with the latest CSO figures showing a rate of 12.4pc for 15 to 24-year-olds, highlighting the continuing challenge of ensuring that people entering the workforce have the right skills to access available roles.

Kinsella noted that the findings are reflective of a much wider pattern now visible across developed economies, where the issue is no longer job creation, but whether countries have the people and capacity needed to support continued growth.

She said: “What Ireland is facing is part of a much wider shift across advanced economies. We have adapted before as technology changed the way we work, and we will adapt again. 

“But this next phase will depend on whether we invest properly in skills, support people to retrain and make it easier for employers to access the talent they need in areas such as AI, machine learning, engineering and healthcare. That is where the real focus now needs to be.”

Earlier this month, WiCyS and FourOne Insights published data that explored how skills-based cyber practices have the potential to positively impact employees and their organisations. 

The ‘ROI of Resilience: How Cybersecurity Talent Management Best Practices Improve the Bottom Line’ study suggested that skills-based, talent-friendly practices often generate the highest returns for an organisation and its workforce. 

The report said: “High-ROI practices, such as transparent promotion processes, executive sponsorship, access to upskilling and mentorship, and engagement with trusted third-party partners, can consistently reduce hiring friction and support retention. Over time, they open advancement pathways that have historically been narrow, especially for women.”