More firms facing skills shortage as 85pc plan to hire next year, survey shows

A survey by recruitment specialists Hays found that 85pc plan to hire next year, down slightly on 90pc last year. More than three in four firms increased pay this year, down on 84pc last year, mainly as a result of the cost-of-living crisis.

Public Expenditure Minister Paschal Donohoe said last week that jobs were the main motor of economic growth in the country and would make the difference between a technical recession and continued growth.

But the Hays survey found that a slightly higher number of firms this year – 94pc compared to 92pc in 2022 – are facing skills shortages.

More than half of respondents (53pc) said that recruiting the right talent is the greatest external challenge for their organisation.

While 62pc predict talent retention will present the greatest internal challenge over the next year.

More than half of workers (56pc) say they feel positive about their career prospects this year, down slightly on last year (58pc).

Of those who have changed jobs in the last year, most say the move was down a lack of career progression (40pc) and a lack of career development opportunities (38pc) in their previous roles.

The survey of 1,451 workers and employers across Ireland was conducted between August and September, and is published today as part of the 2024 Hays Salary and Recruiting Trends Guide.

The majority of employers surveyed (58pc) said they are optimistic about the wider economic climate and the employment opportunities over the upcoming years.

Maureen Lynch, managing director at Hays Ireland, said the results reflect “a sense of optimism in the job market”.

“The steadfast commitment of Irish employers to their hiring goals despite some continued economic concerns not only speaks to their adaptability but also signals another positive outlook for the job market.

“However, challenges will persist in the upcoming year as both employers and employees grapple with economic challenges like living costs and inflation.

“A talent and skills shortage continues to be a concern for employers, with many having to raise wages to both attract new talent and retain existing employees.”

Hays employs over 13,000 staff across 33 countries.

A recent survey by Irish-owned talent services firm Morgan McKinley found that people with in-demand jobs like tech workers, builders and engineers could see their wages climb by up to 15pc next year.

But the survey predicted most employees’ pay will remain flat due to higher inflation.