Ireland\u2019s labour market is showing clear signs of cooling, with recruiters warning that hiring conditions have reached what they describe as an \u201cinflection point\u201d after several years of strong growth.<\/p>\n
New data from the Employment and Recruitment Federation<\/a> (ERF) indicates that employers are increasingly moving away from permanent hires and turning instead to temporary and contract staffing as confidence in the jobs market weakens.<\/p>\n The ERF Irish Labour Market Monitor for Q1 highlights a notable slowdown in recruitment activity across Ireland.<\/p>\n The share of recruiters reporting an increase in permanent vacancies fell significantly, dropping from 52% in January to 28% in March.<\/p>\n At the same time, expectations for hiring over the next three months have also declined, suggesting fewer organisations plan to recruit new permanent staff in the short term.<\/p>\n Recruiters are also reporting a rise in available talent, with more qualified candidates actively applying for roles.<\/p>\n The proportion of recruiters seeing increased candidate availability rose from 24% in January to 36% in March, indicating a softening in demand across parts of the labour market.<\/p>\n This shift is creating greater competition among jobseekers, particularly for permanent positions.<\/p>\n The report, based on a survey of more than 600 recruitment businesses nationwide, points to a growing preference among employers for flexible staffing models.<\/p>\n The share of recruiters filling 50 or more temporary roles per month increased from 9% to 13% during the quarter.<\/p>\n This trend suggests employers are prioritising flexibility and cost control while navigating economic uncertainty.<\/p>\n ERF president Siobh\u00e1n Kinsella said the latest figures reflect a market that has stalled rather than declined outright.<\/p>\n \u201cThis 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,\u201d Ms Kinsella said.<\/p>\n<\/blockquote>\n She added that recruiters had been signalling weakening conditions well before broader economic indicators began to reflect the slowdown.<\/p>\n \u201cThe 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,\u201d Ms Kinsella said.<\/p>\n<\/blockquote>\n Ireland\u2019s unemployment rate rose to 4.7% in March, the first increase in four months, while youth unemployment stood at 12.5%.<\/p>\n The Department of Finance has forecast that unemployment will remain at 4.7% this year before rising to 4.9% by 2029, as overall employment growth is expected to slow.<\/p>\n The recent rise has been linked in part to ongoing redundancies in the technology sector, with major employers including Meta and Amazon among those reducing headcount.<\/p>\n The report also highlights the increasing impact of artificial intelligence on recruitment practices across Ireland.<\/p>\n Michael Lantry, chief executive of GemPool and honorary secretary of the ERF, said the sector is undergoing rapid structural change.<\/p>\n \u201c70pc 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,\u201d Mr Lantry said.<\/p>\n<\/blockquote>\n He added that AI adoption is already influencing how recruitment firms operate internally and how clients approach hiring decisions.<\/p>\n The findings come as Ireland prepares to take on 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 time of domestic transition.<\/p>\n As Ireland\u2019s recruitment landscape continues to evolve, both employers and jobseekers are adapting to new hiring patterns, increased competition, and the growing use of technology in recruitment.<\/p>\n For the latest job opportunities<\/a> and career fairs<\/a> across Ireland, visit Recruit.ie and stay informed about developments shaping the future of work. Unlock Your Career Potential! Discover job opportunities tailored to your skills and aspiration. Ireland\u2019s labour market is showing clear signs of cooling, with recruiters warning that hiring conditions have reached what they describe as an \u201cinflection point\u201d after several years of strong growth. New data from the Employment and Recruitment Federation (ERF) indicates that employers are increasingly moving away from permanent hires and turning instead to temporary and …<\/p>\nPermanent hiring slows sharply<\/h6>\n
More candidates chasing fewer roles<\/h6>\n
Temporary and contract work on the rise<\/h6>\n
\u201cA labour market on hold\u201d<\/h6>\n
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Rising unemployment and sector pressures<\/h6>\n
AI begins to reshape recruitment<\/h6>\n
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Market transition ahead of EU Presidency<\/h6>\n
Explore opportunities in a changing job market<\/h6>\n
\nYour next career move starts here<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"