Irish Labor Market Shows Renewed Optimism with 2026 Hiring Surge Expected

Employer Confidence Rebounds as Hiring Plans Accelerate

Ireland’s job market is showing promising signs of recovery according to the latest Hiring Trends Update from IrishJobs. The comprehensive study, conducted in partnership with parent company Stepstone Group, reveals that approximately 25% of employers anticipate increasing their hiring activities in 2026. This marks a significant shift in business sentiment following a period of economic uncertainty and global market volatility.

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The research gathered responses from 500 employers and 1,000 professionals nationwide, providing a robust snapshot of current recruitment dynamics. “The findings indicate a positive increase in confidence,” the report notes, suggesting that businesses are adapting to new economic realities and preparing for growth.

Corporate Size Influences Hiring Strategy

Not all organizations are approaching hiring with equal enthusiasm. The data reveals a clear divergence between smaller and larger enterprises. While 27% of major corporations plan to expand their workforce, only 21% of small and medium-sized enterprises share this optimism. This caution among SMEs reflects the ongoing challenges facing smaller businesses in a competitive market landscape.

Specialized roles are receiving particular attention, with 21% of employers increasing budget allocations for specialist positions. Additionally, 19% are investing more in temporary and contractor recruitment, indicating a strategic shift toward flexible workforce solutions., according to recent innovations

Labor Market Challenges Persist Despite Optimism

Despite the positive hiring outlook, the report identifies several significant challenges. Nearly one-quarter of employers have undergone organizational restructuring in the past six months, reflecting ongoing adjustments to market conditions. The recruitment process itself has become more protracted, with the median hiring timeline extending to approximately 10 weeks.

Christopher Paye, Country Director of The Stepstone Group Ireland, emphasized the complexity of the current environment. “The launch of the first IrishJobs Hiring Trends Updates provides an important insight into the recruitment landscape during a period of volatility for the Irish economy and workforce,” he noted.

Talent Shortage Intensifies Skills Competition

The struggle to find qualified candidates represents one of the most pressing concerns for employers. An overwhelming 70% report difficulty sourcing applicants with future-proof skills. While technical capabilities in areas like artificial intelligence and data analysis remain in high demand, employers are increasingly prioritizing soft skills including leadership and people management.

Global tensions are exacerbating international recruitment challenges, creating additional barriers to accessing specialized talent pools. This talent crunch is particularly acute in the technology sector, which saw a 20% increase in job growth, with software engineers, data engineers, and site reliability engineers among the most sought-after professionals.

Jobseekers Embrace Active Market Participation

The report reveals equally dynamic activity among professionals, with 21% actively seeking new opportunities during September alone. Nearly 30% plan to pursue new positions in 2026, suggesting sustained mobility in the labor market., as previous analysis

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Compensation remains the primary consideration for job seekers, but work-life balance follows closely with 31% identifying it as their second-most important factor. This evolving priority reflects broader shifts in workplace expectations post-pandemic.

Sector-Specific Growth Patterns Emerge

Distinct patterns of growth are appearing across different industries. The education sector leads with a remarkable 33% increase in job creation over the past six months, followed by:

• Social care (30% growth)
• Management positions (29% growth)
• Consulting roles (26% growth)
• Customer service (23% growth)

Paye highlighted the strategic implications for employers: “With jobseeker activity set to rise in the months ahead, employers should consider reviewing their employee offering to ensure they remain attractive to high-caliber talent. Jobseekers are increasingly looking beyond salary and considering a broad range of criteria when deciding on a new role.”

The convergence of increased hiring intentions and active job seeking suggests Ireland’s labor market is entering a period of renewed vitality, though organizations must navigate persistent challenges in talent acquisition and retention to fully capitalize on emerging opportunities.

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