Irish employers optimistic about 2021 job prospects, with 50% hoping to give staff pay rises

An international survey by job site Indeed has found that Irish employers are feeling positive about the job outlook this year. The survey found that 63% of Irish employers were optimistic about the job market in 2021, higher than the global average of 54%. Globally, employers in India were most likely to say that they are very optimistic about the job market in 2021 while the least likely were those in Italy.

Half of employers hope to give pay rises this year, another sign of positive movement in the job market. Employers in Limerick were most optimistic about pay rises for staff, followed by those in Galway, Dublin, Cork and Waterford. However, this employer outlook contrasts with worker sentiment, with 43% of workers saying they were not optimistic about the job market in 2021, while 48% were not optimistic about salary increases.

Despite the pessimistic outlook of workers for the year ahead, 54% are open to or actively looking for new job opportunities, while 42% of employers say they plan to hire at the same rate or more than pre-pandemic. Some 44% of Irish employers felt they will not have any problems attracting new talent if and when they need to – showing the highest confidence level globally.

Derek Diviney, Vice President at Indeed commented “It’s encouraging to see Irish employers regaining their confidence in workforce planning. Despite short term lockdown uncertainty, the vaccine has provided a much-needed boost to the longer term business outlook. Naturally, we can see that worker outlook is bruised from a very tough year, but this does not match employer optimism for future hiring which is good news for those looking to switch or regain employment this year.”

“Employer confidence in the talent pipeline is crucial to support business growth. The fact that Irish employers were the most confident about this out of all the countries surveyed indicates the talent pool here is strong overall and has a diverse skill set ready to meet their needs.”

The survey also looked at the drivers for job switching this year. Employers believe that the positive business outlook of the company will be the top reason talent join them in 2021, while employees believe a higher salary would be the number one driver to make a career switch.

Looking at new policies employers plan to implement this year, mental health support topped the list, with 52% of employers expecting to put more measures like this in place. Some 51% of employers also expect to implement improved flexible work options, while 44% expect to add increased work from home options.