Tariff Tensions vs Talent Demand: Irish Job Growth Up in Q1

Hiring activity across key sectors in Ireland showed resilience in Q1 2025, with job postings at Matrix Recruitment rising 15.3% year-on-year, despite economic uncertainty.

According to the latest Workforce Trends Report from Matrix Recruitment, employers demonstrated a cautious but steady approach to hiring in the first quarter of 2025, particularly in sectors with ongoing talent shortages, such as Manufacturing, Engineering, and Financial Services.

“While economic uncertainty remains a concern, we are seeing strong demand for skilled professionals across multiple industries,” said Breda Dooley, Head of Recruitment at Matrix Recruitment.

“Manufacturing remains a key generator of jobs in Ireland, and we are seeing increased investment in ESG roles. The market is evolving, and job seekers with in-demand skills will continue to be at an advantage.”

Sector-Specific Trends

The latest data from AIB’s manufacturing PMI reported a modest upturn in manufacturing performance in the first quarter of the year on the back of increased production and new contracts. This was reflected in hiring trends with manufacturing accounting for over 25% of live job listings at Matrix Recruitment in Q1 2025.

The number of manufacturing roles grew by 29% in Q1 2025 compared to the same time last year with Matrix Recruitment reporting that employers are actively recruiting for a wider range of technical and supervisory positions, with job titles like Production Manager, Maintenance Technician, Mechanical Design Engineer, and Production Team Leader driving the surge.

Roles related to environment, sustainability, and green strategy rose YOY (5%), signalling that more employers in Ireland are recognising the importance of ESG as part of their overall business strategy and investing accordingly.

Permanent vs. Temporary Roles

Demand for permanent positions rose by 10.5% in Q1 2025, accounting for over 65% of all job listings at Matrix Recruitment. Meanwhile, temporary hiring surged by 16.7%, indicating a shift toward workforce flexibility.Speaking about this uptick in temp and contract roles, Breda Dooley said: “The growth in short-term project and cover roles is clearly a reflection of the economic uncertainty we are feeling at the minute. Many businesses are focused on staying agile and prioritising their short-term operational needs over future growth.”

Regional Hiring Hotspots

The services sector saw a surge in hiring, particularly for administrative and clerical roles, with job postings increasing by 28.6% in counties such as Westmeath and Kildare.

Waterford witnessed a notable rise in engineering and manufacturing roles, aligning with ongoing industry investment in the Southeast. Manufacturing jobs were also particularly strong in Roscommon, Cavan, and Westmeath.

Trump Tariffs v Job Creation

As Ireland continues to navigate the complexities of the global economic landscape, several key factors will influence hiring trends for the remainder of the year. Among these, global trade tensions remain a central concern. The Irish Government has warned that up to 80,000 future jobs could be at risk if the US proceeds with additional tariffs on the EU. Although the tariffs have now been confirmed, they are currently subject to a 90-day pause, providing a window for negotiation and potential resolution.

This period of uncertainty means that while certain sectors, including automotive, machinery, electronics, minerals, and agriculture, may be more vulnerable to disruption, the full extent of the impact remains to be seen. Matrix Recruitment has noted a potential for sharper-than-expected slowdown in job growth, following the US administration’s April 2nd announcement. However, with EU leaders hoping to engaging in dialogue with the US, there remains cautious optimism that an agreement could mitigate the worst-case scenarios.

Focusing on SMEs, Breda warns: “Already under pressure from recent increases in sick pay and the minimum wage, SMEs are facing mounting challenges. With the added strain of global trade uncertainties, headcount reductions could become a reality for many smaller businesses. As we move further into 2025, SMEs will need to focus on resilience and adaptability to navigate these economic headwinds.”

Skills In Demand

Talent that will continue to be in demand in 2025 includes professionals with expertise in AI, cybersecurity, sustainability, healthcare, and construction. Additionally, digital transformation skills, such as cloud computing, data analytics, and automation, will be crucial as businesses adapt to evolving technologies and market demands.

Internal upskilling will also be crucial throughout 2025, says Breda Dooley, adding: “For companies unable to expand their teams, looking inward and proactively addressing future skills gaps will be essential. Employers must prioritise training and upskilling initiatives to keep their workforce competitive. Investing in mentorship programmes and partnerships with educational institutions will help employees develop the in-demand skills needed for long-term success.”

Despite current geopolitical tensions and economic uncertainty, Q2 is expected to remain suitably stable for job seekers, according to Matrix Recruitment, with opportunities available for those with the right skills, adaptability, and a proactive approach to career development.