Ireland’s Labour Market 2025: A Shifting Landscape
As we move further into 2025, Ireland’s labour market continues to evolve against a backdrop of low unemployment, record-high workforce participation and changing employee expectations. Unemployment hovers just under 4%, a testament to the resilience of the economy. Yet, the landscape is not without its pressures - economic uncertainty, housing shortages and global market volatility are beginning to influence hiring patterns across sectors.
Despite a slight cooling in overall hiring activity, demand remains strong for specialised talent, particularly in Technology, Life Sciences, Accounting and Project Management. Ireland's role as a key hub for innovation ensures that multinationals and indigenous firms alike remain active in recruitment. However, competition for talent is still challenging, especially in sectors like construction and healthcare, where chronic skill shortages persist.
As organisations adjust to tighter profit margins, salary growth is expected to moderate. Companies are becoming more cautious in expansion plans, placing a greater emphasis on strategic hiring and internal talent development rather than rapid scaling.
The New Normal: Flexibility in the Workplace
The hybrid model has cemented itself as the standard across most industries. While fully remote opportunities still exist, they are increasingly rare, with many employers encouraging a return to the office, at least part-time. This shift is prompting candidates to weigh their priorities: some are opting for reduced salaries in exchange for full remote flexibility, while others demand a premium for daily office attendance.
In this environment, clear and consistent remote work policies have become critical. Employers who fail to define or communicate their hybrid models risk losing out on skilled professionals seeking transparency and work-life balance.
Sustainable Growth Through Talent Investment
Ireland’s economic success is closely linked to its ability to attract and retain top global talent. Foreign Direct Investment (FDI) plays a pivotal role, accounting for 11% of total national employment and contributing over €38 billion to the economy annually. This investment has transformed Ireland into a global centre for high-value industries, from pharmaceuticals to fintech.
But this transformation requires ongoing focus on talent development. To secure the next generation of leaders, companies must look beyond salary. Culture, growth opportunities, benefits and strong ED&I (Equality, Diversity and Inclusion) practices are becoming central to the employee value proposition.
To help businesses navigate this complex landscape, our 2025 Collins McNicholas Salary Guide delivers comprehensive insights into pay trends across Ireland. Covering 13 sectors and eight regions, including Dublin, South, Southeast, Midlands, Midwest, West, Northwest and Northeast, the guide is a valuable benchmarking tool for companies seeking to remain competitive.
Our analysis is grounded in robust data: we surveyed over 5,900 job seekers and analysed more than 400 successful placements between January and March 2025.
Planning for the Future
As businesses plan for growth in an evolving market, understanding the dynamics of the current labour force is essential. Strategic workforce planning, informed by up-to-date salary data and grounded in long-term talent development, will be key to navigating the challenges ahead.
Ireland's continued prosperity will depend not just on attracting global investment, but on fostering a work environment where talent can thrive. Competitive pay, flexibility and meaningful career paths are not optional, they are the foundation of future success.
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