“Brexit bump” disrupts hiring in finance but growth in construction and hotel job vacancies continues

As the final Brexit deadline draws closer and Westminster’s no-deal rhetoric intensifies, some Irish employers are reining in their hiring efforts, despite a healthy, growing economy.

According to the latest edition of the IrishJobs.ie Jobs Index, in Q2 2019, total job vacancies decreased by 4% year-on-year and by 2% quarter-on-quarter.

These reductions have been driven primarily by a group of knowledge-intensive sectors, particularly accounting and finance and banking, financial services, and insurance, which fell by 8% and 15% year-on-year, respectively.

While other factors, including virtually full employment and sluggish European markets, are affecting hiring, recruitment has been made more difficult and uncertain by Brexit.

Employers who depend on exports, like the science, pharmaceuticals and food industry, whose job vacancies declined by 1% year-on-year, must factor in the disruption that may be caused by tariffs, border checks and other supply chain disruptions.

However, despite the obvious difficulties of Brexit, the Irish economy is in an overall strong position, underpinned by high consumer expenditure, low unemployment and sustained foreign direct investment.

The IrishJobs.ie Jobs Index shows that job vacancies in the construction, architecture and property, engineering and utilities sector increased by 7% year-on-year and 4% quarter-and-quarter, reflecting an unabated demand for new residential and commercial units.

Ireland remains a top overseas tourism destination. Hotel and catering job vacancies rose by 6% year-on-year and 8% quarter-on-quarter, and the sector continues to advertise the largest share (25%) of total job vacancies by a significant margin.

Commenting, Jane Lorigan of IrishJobs.ie, said:

“The latest edition of the IrishJobs.ie Jobs Index highlights a watershed moment for the jobs market. While the economy is in good health, and sectors like construction and hotel and catering continue to grow, as the countdown to the UK’s EU withdrawal edges closer, the Tory leadership race draws to a close, and its likely victor refuses to rule out a no-deal Brexit, many Irish businesses are bracing for a bumpy ride, one that could last well into next year.

“Hiring is a costly, long-term investment, and Brexit complicates the decision-making process by piling on layers of additional operational considerations and uncertainties. The result is a more cautious jobs market.

“The post-Brexit prospect of manned borders, customs checks, tariffs and supply chain disruptions may be forcing businesses to reroute funding that would otherwise be spent on expansion and job creation to contingency plans and emergency savings.

“Ireland’s economy continues to grow, supported by a diverse spread of international, export-focused industries. The long-term outlook, overall, remains positive. However, as we head deeper into Q3, businesses must prepare for further Brexit bumps and, potentially, by year’s end, fundamental changes to the way we do business, not just with our nearest neighbour, but with customers and clients across the Border.”