by HRHQ Editorial Team
New data released to coincide with the recent IRN Annual Conference highlights a clear cooling in pay growth across Ireland this year, signalling a more cautious stance among employers as economic uncertainty persists. According to the latest Employment Practices Survey from CIPD and Industrial Relations News, just 59% of employers plan to increase pay in 2026—down from 78% who implemented rises last year. The average planned increase now sits at 2.9%, continuing a steady decline from 3.3% in 2025 and 4.2% in 2024 .
CIPD Ireland’s Country Director, Alison Hodgson, notes that while pay growth has not disappeared, the downward trajectory is unmistakable. Organisations, she says, are “taking a more cautious approach in the face of ongoing economic uncertainty,” balancing cost pressures with the need to remain competitive in a tight labour market.
The survey also sheds light on workforce planning: 44% of employers expect to increase headcount this year, while 14% anticipate reductions. Beyond pay, the housing crisis continues to exert significant influence on talent attraction and retention. Employers report that the scarcity of affordable accommodation is hampering recruitment efforts, elevating the strategic importance of flexible and hybrid working arrangements.
With 135 private and semi‑state employers participating, the findings offer a timely snapshot of employment practices. The message is clear: 2026 will demand careful balancing of financial prudence with the ongoing competition for talent.
