by HRHQ Editorial Team
Despite global economic headwinds, Ireland’s recruitment industry continues to show strong underlying momentum, according to the Q1 2025 Labour Market Monitor released today by the Employment & Recruitment Federation (ERF).
Compiled by Ipsos B&A, the quarterly report highlights that employment remains close to full capacity, with Ireland’s unemployment rate at 4.0% in March 2025, up slightly from 3.9% in February but still well below the EU average of 6.2%.
Permanent hiring activity remained stable throughout the first quarter, with over 90% of recruitment firms actively placing candidates in long-term roles. Contract and temporary roles saw more fluctuation, reflecting evolving business needs and candidate preferences. Notably, two-thirds of recruitment agencies secured at least one new client in March, although this was a slight dip from January and February levels.
“What we’re seeing is a dynamic but tight labour market,” said Siobhán Kinsella, President of the ERF. “Recruiters are working diligently to source specialised talent, particularly in sectors like construction, nursing, software, and engineering but the appetite to hire remains resilient, even as global uncertainties loom.”
Salaries for permanent positions continue to rise, with average weekly earnings increasing by 5.6% year-on-year, underscoring the competitive landscape for talent. Recruiters also report continued demand for hybrid working arrangements, now accounting for up to 12% of vacancies. In contrast, fully remote roles have declined significantly, reflecting a shift in employer expectations.
Meanwhile, skills shortages persist across key sectors, prompting firms to look increasingly toward international talent to fill gaps.
While the labour market remains robust, sentiment has grown more cautious. The Credit Union Consumer Sentiment Index fell to 58.7 in April, its lowest level in two years, as concerns over global economic stability and potential U.S. tariffs weigh on Irish households. Reflecting this uncertainty, the proportion of recruiters expecting vacancies to decline in the next three months has doubled since February.
