Irish Job Market Shows Signs of Cooling but Remains Resilient

The Irish job market is showing signs of cooling down, with recent reports indicating a decrease in job vacancies. However, experts remain optimistic about the overall health of the labor market, highlighting its resilience and continued growth potential.

Job Vacancies Decline

Two separate reports released today paint a picture of a slightly slowing job market. The IrishJobs Jobs Index reveals a 13% year-on-year decline in new job vacancies during the third quarter. On a quarterly basis, the drop was more moderate, at 4%. This trend coincides with a decrease in fully remote job openings, which have fallen to their lowest point in nearly four years, according to IrishJobs.

Despite the retreat in remote positions, hybrid working vacancies have remained steady. Sectors tied to the domestic economy, such as property and retail, showed positive quarterly growth in job vacancies, while sectors like manufacturing, banking, finance, and IT experienced decreases.

Labor Market Still Strong

“With moderate economic growth projected by the ERSI for the rest of the year and into 2025, this sustained performance of the Irish economy is reflected in the labor market,” said Sam Dooley, Country Director of The Stepstone Group Ireland with responsibility for IrishJobs.

“Unemployment levels are expected to remain under 4.5% into 2025, a clear indicator that the labor market is operating at or close to capacity,” added Mr. Dooley.

Signs of Resilience in Professional Sectors

The Morgan McKinley Quarterly Employment Monitor paints a slightly different picture, showing a decline in professional job seekers in July and August. However, these numbers surged between August and September, indicating a resilient market.

“While the labor market shows signs of contraction, it remains resilient,” said Trayc Keevans, Global FDI Director, Morgan McKinley Ireland.

“The slight decrease in job opportunities reflects an economy adapting to challenges, particularly around regulatory compliance and digital transformation,” added Ms. Keevans.

Technology and Finance Sectors Drive Demand

Ms. Keevans noted that hiring in the technology sector remains steady, with a clear increase in permanent roles from late August to September. This is attributed to anticipated headcount needs for 2025. Recent redundancies at large multinationals have also introduced senior-level candidates into the market, expanding the talent pool.

The financial services sector also mirrors this trend, with increased hiring in compliance and risk management roles as companies prepare for the implications of the Digital Operational Resilience Act (DORA) coming into effect in January 2025.

ESG and Renewable Energy Create Opportunities

Alongside these trends, the renewable energy sector continues to create opportunities for finance professionals, particularly in project financing.

Demand for ESG reporting experts is also on the rise due to EU legislation emphasizing transparency and sustainability.

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