Irish Labour Market at a Crossroads: Osborne’s Q1 Recruitment, Market & Business Trends Reveal Opportunities and Challenges for Business in 2025
As Ireland’s economy shows signs of steady growth (GDP grew by a healthy 9.7% in Q1) after a period of cautiousness at the end of Q4 2024 and into early Q1 2025, the labour market finds itself at a crossroads.
According to Osborne’s Q1 2025 Recruitment, Business, Market & Economic Trends report, the employment landscape is evolving rapidly, with rising hiring intent, growing staff mobility, and the continued push-pull of hybrid work.
The report, based on a nationwide employer survey covering over 530 businesses representing over 200,000 employees across multiple sectors and business sizes, coupled with a survey of over 3000 jobseekers reveals a labour market grappling with both opportunity and challenge.
“The data tells us that Irish employers are optimistic but still cautious,” said Joanne Murray, Osborne’s Recruitment & Business Director. “Hiring is bouncing back, but skills shortages, evolving employee expectations, rising business costs and economic uncertainty are complicating the picture.”
Key Findings from Osborne’s National Employer & Candidate Survey
• Businesses feeling the strain: 36% of businesses are burdened by rising costs, while 18% fear economic uncertainty and 11% cite global instability as growing threats.
• Hiring Surge Ahead: 73% of companies plan to recruit in 2025, a sharp increase from 51% in Q4 2024, 76% intend to recruit Permanent or contract staff.
• Redundancies: There is a reported reduction in the number of companies considering restructuring or redundancies at 8% down from 16% in Q4
• Hybrid Strains: 81% of hybrid workplaces report challenges including communication breakdowns, resistance to onsite work and reduced productivity while 46% of jobseekers are seeking hybrid arrangements from their next role.
• Retention Struggles: 75% of organisations experienced staff resignations, with career development cited as the leading reason at 36%.
• Counteroffers Increasing: One-third of companies made counteroffers to retain talent but just over half (51%) were successful in doing so.
• AI & Digital Engagement: While 51% of employers see AI as a positive, 45% remain unsure of its impact on the workforce, 17% of jobseekers are worried about the impact of AI on their roles.
• Candidate Motivations: Nearly half of jobseekers (43%) are actively considering a move. Flexibility (88%), salary (68%), and benefits (56%) top jobseekers’ wish lists.
With the latest labour market figures released from the CSO showing employment rose by 3.3% Year on Year, the competition to recruit Talent is fierce and companies need to differentiate themselves “Flexibility has emerged as the new currency,” added Marsha O’Sullivan, Osborne’s Director of Client Services. “The companies that embrace modern work models and invest in training are the ones most likely attract the best Talent.” With the noted increase in employee resignations employers need to act quickly to create effective employee retention strategies are seen as essential to increase retention and counter this growing trend, employers need to act quickly, to enhance their Employer Value Proposition.
A Dual Message: Optimism and Urgency
The data from Osborne underlines a dual message: while Ireland’s economy and labour force are expanding, so too are the challenges facing employers. Employers have highlighted Rising Costs 36%, Economic Uncertainty (18%) Recruitment & Retention 17% and Skills Shortages 12% as the key challenges impacting their businesses and their outlook for 2025
With an already tight talent pool, and 38% of jobseekers surveyed considering emigration (mostly within the EU 49%) in search of better work-life balance, career opportunities, and salaries Osborne CEO & Owner Shona McManus believes ‘the stakes have never been higher to attract & retain the right talent to ensure continued business sustainability & growth’