Nearly half of Irish employers reducing hiring for entry & grad roles

Leading hiring platform IrishJobs has today published new data from its Hiring Trends Update, revealing that nearly half (46%) of employers plan on increase hiring in the second half of 2026, as confidence remains steady despite a backdrop of economic uncertainty.

While the hiring landscape is broadly positive, there are signs that employers are moving to a more targeted model of talent acquisition. 83% of recruiters say that hiring is now more strategic and focused on specific roles.

The IrishJobs Hiring Trends Update is a biannual research report on the state of the recruitment market in Ireland. The research gathered insights from over 500 employers and nearly 1,000 professionals in Ireland on the evolving hiring landscape and shifting attitudes and actions across the market.

Hiring landscape

The research findings show that the Irish jobs market remains largely resilient, despite elevated economic and geopolitical volatility. 46% of employers plan on increasing hiring over the coming months. This positive hiring sentiment is highest among large organisations, with 54% expecting to increase hiring in Q2 and Q3 this year. In contrast, only 35% of small businesses plan on increasing hiring levels, reflecting a more cautious outlook on future growth.

Confidence is highest in the manufacturing sector. More than 2 in 3 (69%) of manufacturing firms plan on increasing hiring in the coming months.

Nearly 4 in 10 (39%) of employers increased recruitment levels in the first half of the year, a 6% rise on Q2 and Q3 of 2025. The findings reveal signs of correlation between company size and confidence, with 44% of large firms increasing hiring levels compared to 33% of small organisations.

Despite some recent high-profile headcount reductions by large tech multinationals, 56% of employers in the IT and telecoms sector increased hiring over the last six months. Employers in the professional services (51%), construction (48%) and manufacturing (42%) sectors also indicated they intend to increase hiring in H2.

Strategic hiring

While the overall hiring landscape is encouraging, indicators signal that employers are recalibrating recruitment strategies. More than 4 in 5 (83%) recruiters say that hiring has become more strategic and focused on specific roles.

Against a backdrop of rising labour costs and increased AI adoption, 47% of employers have reduced the number of entry and graduate level roles available in their organisation. 2 in 3 (66%) employers say that the skills needs in their industry are rapidly evolving.

Specialist roles are increasingly where hiring budgets are focused. More than 1 in 4 (28%) firms in Ireland are hiring for highly specialised roles in AI and machine learning. Technical skills are highly in demand across a range of industries, with 22% of employers looking for skilled cybersecurity talent and 23% seeking technology and engineering talent. 24% of employers are hiring talent with skills in sales and business development.

Pace of hiring

The competitive labour market dynamic continues to have an impact on employers looking to secure high-calibre talent. The median time for successful hiring is 8 weeks, as employers continue to face challenges in managing a growing volume of job applications.

78% of recruiters say they are learning to use AI tools and automation to reduce administrative burdens and streamline the hiring process. Previous research carried out by IrishJobs in 2024 revealed that 28% of recruiters were using AI tools, providing a further indication that engagement with AI and automation in recruitment is continuing to rise.

Commenting on the findings, Julius Probst, Labour Economist for the Stepstone Group Ireland, said:

“Despite a major energy shock and elevated geopolitical uncertainty, economic indicators show that the Irish economy is navigating these challenges well and continues to experience domestic growth. The Spring Economic Forecast recently published by the Government sets out a number of scenarios for the Irish economy over the coming months, depending on the depth and duration of the conflict in the Middle East.

In all scenarios, the economy is expected to continue to grow, but at a slower pace, with inflation increasing. Unemployment is expected to remain under 5 per cent, backed by strong, though slowing, employment growth. The hiring outlook remains broadly positive with employers expected to face continuing high levels of competition for talent and strong upward pressure on wage growth.”

Christopher Paye, Country Director of The Stepstone Group Ireland with responsibility for IrishJobs, said:

“Published today, the H1 2026 IrishJobs Hiring Trends Update provides a snapshot into the recruitment landscape in Ireland during a period of exceptional volatility and change. It’s clear from the findings that despite ongoing economic uncertainty, Ireland’s labour market remains fundamentally resilient. Employers are planning for growth, particularly in sectors such as manufacturing and construction, where demand for skilled talent continues to outpace supply.

At the same time, we’re seeing a clear shift toward more strategic hiring, with organisations prioritising business-critical roles that support productivity and long-term competitiveness.

As hiring becomes more selective, our findings show that employers are prioritising targeted capability-building in specialised functions such as AI and cybersecurity, rather than broad-based expansion. Rising labour costs and advances in AI are also reshaping workforce planning, prompting many employers to rebalance their hiring mix and focus on experienced talent with in-demand skills.

For employers, success in the months ahead will depend on the ability to invest in talent development and adapt their hiring strategies to these shifts. More employers will likely take a skills-based approach to hiring, as they look beyond traditional qualifications to identify candidates with the technical and transferable skills needed to adapt in this fast-changing environment. Employers who take a proactive approach to talent planning today will be best positioned to navigate a shifting labour market and sustain growth in the months ahead.”

For further information on the findings, please visit: https://www.IrishJobs.ie/.