Updated / 3rd September, 2025

Skills shortages continue to blight Irish jobs growth

Recruiters forecast jobs growth amid persistent skills shortages.

Recruiters across Ireland are anticipating a rise in job vacancies over the coming months, though concerns about talent availability continue to dominate.

That’s according to the latest Labour Market Monitor from the Employment and Recruitment Federation (ERF), supported by ICON Accounting.

“Demand is strong, it’s access to skills that continues to test the market”

The Labour Market Monitor offers real-time insights into recruiter sentiment, tracking trends in vacancies, placements and salaries across the country.

The latest report reveals that 55% of recruiters expect vacancy levels to increase in the next quarter, while only 12% foresee a decline.

Labour market shows resilience

Despite strong demand, confidence in candidate supply remains subdued, with just 39% predicting growth in the pool of qualified applicants.

Hiring activity in July remained largely stable. Permanent and contract roles saw minimal change compared to June, while temporary hiring showed more variation.

Approximately one in three firms reported growth in temporary vacancies and placements, though around one in five noted a decline.

Ireland’s labour market continues to show resilience, with over 2.8m people in employment and the national unemployment rate holding steady at 4.0%.

“The July Monitor shows a steady market, not slowing. Employers are still hiring and expect more vacancies in autumn, but talent supply remains the pinch point,” said Siobhán Kinsella, President of the ERF.

“Demand is strong, it’s access to skills that continues to test the market. As Budget 2026 approaches, we need policies that support training and ease cost pressures so firms can keep delivering jobs.”

For Information:

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

The Employment & Recruitment Federation is a voluntary organisation set up to establish and maintain standards and codes of practice for the recruitment industry.

Representing over 200 member companies throughout Ireland, the ERF develops and promotes education and training, and provides information and advice on the sector, as well as members services such as vetting, and lobbying on policy and industry issues impacting the labour market.