NEARLY one in four Irish companies expect to increase hiring over the next year, according to new research from IrishJobs.
But a parallel survey by business group Ibec suggests that hiring may be tempered by challenges around skills shortages and rising employment costs.
The IrishJobs report, which spoke with 500 employers and over 1,000 employees, found that 27% of large businesses plan to increase recruitment over the coming months.
The data also showed that a third of Irish companies have already ramped up hiring since April this year, following the trade agreement between the EU and the US.
Yet despite this optimism, skill shortages remain a concern for businesses.
Almost seven in ten employers say they struggle to find workers with the right skills, especially in areas like data analysis and artificial intelligence.
Recruiters are turning to AI to bridge this gap, with nearly half using AI to draft job adverts and over a third using AI for scheduling.
Meanwhile, Ibec’s latest HR Update Report shows that views on working from home vs working in the office, are normalising after years of back and forth.
The hybrid work model remains the preferred one, with 31% of companies using a three-day on-site schedule and 30% operating fully on-site.
Only 18% require employees to attend the office at least twice a week.
Maeve McElwee, Executive Director of Employer Relations at Ibec, said the findings reflect a realistic approach to hybrid work.
“Office attendance patterns are becoming better understood and adaptive to the needs of both employers and employees,” she said, according to RTÉ.
The report also shows that pay growth remains strong: 85% of companies boosted basic pay by an average of 3.6% in 2025, and four-fifths expect further increases next year, albeit at a slower pace of 3.1%.
But companies are also bracing for new regulatory requirements, including the EU’s Pay Transparency Directive due to take effect in June 2026.
Only 1% of organisations say they are fully prepared, and over half are still developing policies on AI use in the workplace.
Across both studies, pay remains the top factor influencing people's decisions, followed closely by work-life balance.
With more than a fifth of Irish professionals actively seeking new roles, the Irish labour market in 2026 appears set for steady growth.
See More: Economy, Irish Job Market, Jobs
