By Róisín Kilroy
As Ireland’s labour market moves into 2026, employers and job seekers alike are navigating a shifting recruitment landscape shaped by skills shortages, technological transformation and evolving worker expectations. Insights from leading recruitment firms and job market data paint a picture of cautious optimism, with targeted opportunities for those with the right skills and mindset.
Steady hiring, but not across the board
According to recruitment platform IrishJobs, nearly one in four employers expect to increase hiring in 2026, suggesting that many organisations are regaining confidence after a period of economic uncertainty. The sentiment reflects stabilising business conditions and a belief in future growth across sectors.
While the overall job market remains competitive, demand is not evenly spread; certain specialised roles continue to dominate recruitment plans, particularly where skills are in short supply. Research shows that around 70 per cent of employers consider finding candidates with the right skills to be their biggest hiring challenge for the year ahead.
Skills at the centre of recruitment strategies
A defining theme for 2026 is the shift toward skills-based hiring. IrishJobs research suggests that many employers are moving beyond traditional credentials, instead assessing candidate capability through structured interviews, assessments and practical case studies, a move that broadens the talent pool and helps companies tap into candidates from diverse backgrounds and non-traditional pathways.
Hays’ employment trends research reinforces this view, reporting that skills shortages remain persistent, with 96 per cent of employers saying they faced skills gaps in the past year. Nearly all organisations are focused on recruiting for these gaps, particularly in digital and technical areas such as AI and technology roles, where demand consistently outpaces supply.
AI and technology: friend or foe in talent attraction?
Another consistent trend is the growing role of artificial intelligence in recruitment processes. IrishJobs data shows that recruiters now regularly use AI tools to draft job adverts, organise interviews and manage administrative tasks, marking a shift from experimentation toward strategic adoption in 2026.
This use of technology, while enhancing efficiency, also raises challenges. Recruiters report increased volumes of applications, some of questionable relevance, as candidates use AI to generate resumes and cover letters. As a result, organisations are refining job descriptions and screening processes to focus more sharply on quality and fit.
Pay, transparency and benefits: what candidates want
Compensation remains a dominant consideration for job seekers. IrishJobs research shows that 51 per cent of job switchers prioritise higher salaries, and a significant portion of candidates plan to look for new roles in 2026.
Salary transparency is emerging as a critical differentiator. Candidates are increasingly likely to avoid job ads that do not include salary information, and employers that publish pay ranges upfront are better positioned to attract talent quickly. With the EU Pay Transparency Directive set to take effect in June 2026, this trend is poised to become a regulatory reality as well as a strategic advantage.
Beyond pay, benefits like hybrid and remote working options, enhanced pensions, wellbeing support and career development opportunities are becoming essential components of the employee value proposition. IrishJobs research highlights that flexibility and total reward, not just salary, are critical factors in attracting and retaining workers in a tight labour market.
Candidate expectations and market realities
Job seekers’ priorities are shifting, too. Data from ICE Jobs indicates that candidates are increasingly selective, prioritising career progression, workplace culture and flexibility alongside compensation. The hybrid work norm continues to expand, positioning such arrangements as baseline expectations rather than premium perks.
While unemployment has edged slightly up to around 5 per cent, overall employment remains robust. Not all candidates are actively hunting for new opportunities; many are prioritising security and stability over change at a time of economic caution.
Navigating 2026 with strategy and skills
For employers, 2026 will be defined by how effectively they translate these emerging trends into recruitment action, investing in skills development, embracing technology without losing the human touch, and crafting compelling total reward packages. Those that do will be better placed to attract and retain talent in a competitive and evolving labour market.
For job seekers, the message is clear: skills, transparency and adaptability are your currency. By building capabilities in high-demand areas and understanding what employers value most, candidates can position themselves advantageously in Ireland’s dynamic jobs market as it heads into 2026.
