Updated / 11th May 2026

Ireland’s job market has stalled recruiters warn

More qualified candidates are chasing each job as permanent roles start to dry up

Irish employers are increasingly opting to take on temporary and contract staff over permanent hires as recruiters warn the labour market has hit an “inflection point” after years of strong hiring growth.

New figures from the Employment and Recruitment Federation (ERF) show confidence in Ireland’s jobs market weakened sharply during the first three months of the year, with recruiters reporting slower permanent hiring, rising numbers of available candidates and a growing shift towards short-term roles.

The ERF’s Q1 Irish Labour Market Monitor found the share of recruiters reporting an increase in permanent vacancies fell from 52pc in January to 28pc by March.

The recruitment outlook over the next three months also dropped sharply, meaning fewer firms are expected to take on new staff.

At the same time, recruiters report seeing applications from more available qualified candidates – a metric that rose from 24pc in January to 36pc in March, suggesting demand has begun to soften.

The report, which surveyed more than 600 recruitment businesses operating across Ireland also pointed to employers increasingly favouring flexible staffing over long-term hiring commitments.

The proportion of recruiters filling 50 or more temporary roles in a single month rose from 9pc in January to 13pc in March.

Siobhán Kinsella, president of the ERF said the figures showed a labour market that had stalled.

“This is not a jobs market in retreat. It is a jobs market on hold. Irish employers came back from Christmas with real optimism, and within three months that confidence had collapsed by nearly a third. That is what a market in transition looks like,” Ms Kinsella said.

The slowdown comes as Ireland has seen a rise in unemployment alongside a fresh wave of technology sector redundancies.

Ireland’s unemployment rate increased to 4.7pc in March, marking the first rise in four months while youth unemployment stood at 12.5pc.

The report noted the Department of Finance forecasting that unemployment will remain at 4.7pc this year before rising to 4.9pc by 2029 as employment growth slows.

Ms Kinsella said recruiters had been warning of weaker conditions before the broader economic data began reflecting the slowdown.

“The ERF data has been signalling caution since late last year. The unemployment uptick to 4.7pc in March and the wave of tech redundancies confirmed by Meta, Amazon and others are not the start of this story, they are the moment the wider economy caught up with what recruiters were already reporting on the ground, Ms Kinsella said.

The report also suggested the growing use of artificial intelligence (AI) is beginning to reshape hiring trends across Ireland.

Michael Lantry, chief executive of recruiter firm GemPool and honorary secretary of the ERF said many recruitment businesses were already reducing internal hiring as AI adoption accelerates.

“70pc of Irish recruitment firms are now using AI to build content, more than half are using it for candidate sourcing, and 40pc are no longer hiring internal staff. We are seeing the same pattern emerge across the clients we work with,” Mr Lantry said.

The findings it said come as Ireland prepares to assume the EU Presidency in the second half of 2026, placing the country at the centre of European labour market and economic policy discussions at a moment when its own market is in transition.

About the Employment & Recruitment Federation (ERF)

The Employment & Recruitment Federation is the representative body for the recruitment and staffing industry in Ireland. ERF is a voluntary organisation which establishes and maintains standards, ethics and codes of practice for the recruitment profession, provides education and events for members, and represents their interests with policymakers, employers and the wider business community.

Find out more at www.erfireland.com

For Information:

SHARON BANNERTON ¦ Managing Director, BANNERTON PR ¦ Mobile: + 353 87 673 1100 ¦ Email: Sharon@BANNERTON.ie