Professional job openings fell in the second quarter as inflation, slowing business growth and housing market issues turned sentiment cautious and put the brakes on hiring, new data show.
The turbulence in the tech sector helped fuel a rise in jobseekers during the three months, according to the Morgan McKinley Ireland Quarterly Employment Monitor, making the recruitment market more employer-led, with increased competition and lower salary offers for senior employees.
The monitor showed a 15.4 per cent decline in vacancies quarter on quarter across all professional sectors. The survey tracks the number of new job vacancies – both permanent positions and contracts – and new candidates in the Republic each quarter.
There was a small fall-off in the number of professional jobseekers, with numbers down 0.8 per cent compared with the first quarter. But the downturn in the tech industry helped fuel a 20 per cent rise in the overall number of job applicants compared with 2022, alongside a rise in the number of business support professionals entering the job market.
Accountancy and finance was among the hardest hit, with a decline of more than 17 per cent in employment opportunities, while projects, transformation and change fell 25 per cent. The technology sector, however, saw only single-digit declines in professional opportunities, at almost 8 per cent, while contract roles rose 11 per cent.
“More notably, there was a 43 per cent decrease in construction opportunities coming to market for this period due to the long lag time in filling prior positions due to the shortage of skills and difficulty in bringing overseas talent into the market to bridge the gap due to challenges in securing housing. The sector is currently facing a severe understaffing issue, with one in four construction jobs remaining unfilled,” said Trayc Keevans, global FDI director at Morgan McKinley Ireland.
“Despite the challenges, certain sectors continue to experience growth, while employers and candidates navigate the evolving landscape of employment in Ireland,” he said.
Among those growth sectors were banking and financial services, which saw a 16 per cent hike in job opportunities, while life sciences and engineering rose 6 per cent off the back of continued investment and expansion by inward investors. Supply chain and procurement opportunities rose 23 per cent quarter on quarter.
The survey also highlighted mounting resistance by employers to remote working, with a growing insistence on physical presence in the office, despite evidence that flexible employers have greater access to skilled talent.
Salaries remained steady, although the more high-demand roles did show an increase in pay, and others showed a decline in salaries as expenses increased.
Certain sectors, such as accountancy and finance and engineering, showed a shift in negotiation dynamics, with an increase in underoffering by employers during the quarter. The cooling of the tech sector had also led to an employer-led market, with a larger talent pool of candidates seeking tech sales positions.
The high cost of living here also had an impact, putting off some international candidates, with others seeking higher salaries as a result.
However, the feared impact of AI on the jobs market has yet to be felt. “Emerging technologies such as artificial intelligence have had minimal effects on hiring practices for the majority of sectors during this quarter,” Ms Keevans said. “Companies are gradually adopting automation and technology advancements, which require skilled professionals to oversee and manage automated processes, rather than replacing jobs.”
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