Updated / 9th November 2026

Temporary workers in Ireland are now more likely to be offered a pay rise than permanent staff, as employers push for flexibility over fixed staff costs.

This is according to findings by the latest Irish Labour Market Monthly Monitor from the Employment and Recruitment Federation (ERF), the representative body for Ireland’s recruitment and staffing industry.

The monthly survey, carried out by Ipsos B&A, found that 23 per cent of recruiters reported higher rates of pay for temporary roles in September, almost double the 12 per cent who said so in July.

Meanwhile, only 13 per cent reported higher salaries for permanent roles.

“Irish employers are keeping their options open,” Siobhan Kinsella, president of the ERF, said. 

“They needed people in September and they hired them, but more of those people are coming in on contract or through an agency. When an employer has to pay more to get someone in the door, it is the temporary role that gets the rise,” she added.

Kinsella said that the use of agency and contract staff are predominantly used in the healthcare and construction sectors, where staff shortages persist.

The ERF pointed to three pressures behind the caution; the war in the Middle East, tech sector layoffs, and rising employment costs.

The war in the Middle East and the subsequent hike in energy prices has resulted in the Ipsos B&A Consumer Confidence Barometer falling to minus 55 in September from minus 42 in January.

Historically major drivers of permanent employment, technology firms are actively reducing staff as they restructure around artificial intelligence (AI), and the cost of hiring continues to rise with increases in employer PRSI alongside a 79-cent increase to the national minimum wage.

The report did find that signs of recovery emerged in September, as 39 per cent of recruiters reported a rise in permanent placements, a welcome shift following a summer dominated by declining permanent vacancies.

However, contract roles remain the primary driver of market growth, as 38 per cent of recruiters saw contract vacancies increase, while a mere 2 per cent reported a decline.

Recruiters are now facing increased uncertainty, with 42 per cent of recruiters now expecting vacancies to increase over the next three months, down from 57 per cent in August and well below last December’s 62 per cent peak.

This anxiety has yet to bleed into official data. The latest CSO figures show the labour market holding resilient, with October's unemployment rate flat at 4.8 per cent, compared to 4.7 per cent a year ago.

“Every permanent hire costs more than it did a year ago, and nobody knows what the war will do to energy prices this winter, so for a lot of employers flexibility feels like the safer bet,” Kinsella said.

“Employers will commit to permanent roles when the cost and the outlook allow it, and recruiters are less sure about the winter than they were a month ago,” she concluded.

About the Employment & Recruitment Federation (ERF)