Findings reflect employment patterns across other developed economies
Recruiters say hiring is becoming more difficult. Photo: PA
Ireland is hitting a “skills wall”, as strong hiring demand continues to rise while the availability of suitably qualified workers remains constrained, according to the Labour Monthly Monitor for February.
The survey, commissioned by the Employment and Recruitment Federation (ERF), shows that more than half of recruiters reported an increase in permanent vacancies in the latest period.
Demand for contract roles rose for 43pc of respondents, while 41pc recorded an increase in temporary vacancies. More than half also expect vacancy levels to keep rising over the next three months.
At the same time, the supply of candidates is not keeping pace. Two-thirds of recruiters said they do not expect any improvement in the availability of suitably skilled workers, pointing to a widening gap between employer requirements and available talent.
Siobhán Kinsella, president of the ERF, said the figures highlight the nature of the current labour market conditions.
“What this data shows 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’s starting to hold businesses back.”
It is becoming harder and more expensive for employers to hire
Ireland’s unemployment rate stood at 4.6pc in February, leaving many employers competing for a limited pool of experienced workers across sectors, it said.
However, youth unemployment remains significantly higher. The latest CSO figures show an unemployment rate of 12.4pc among 15-to-24-year-olds, which raises the challenge of ensuring people entering the workforce have the right skills for available roles.
Ms Kinsella said hiring is becoming more difficult.
“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.”
The findings reflect patterns seen across developed economies, where labour market constraints are increasingly linked to skills availability, Ms Kinsella added.
“What Ireland is facing is part of a much wider shift across advanced economies.
“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.”
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