Ireland’s Economy and Job Market Outlook: Key Trends Heading into 2025
Ireland’s economy is expected to maintain steady growth as we approach 2025, showcasing resilience amidst global uncertainties. With unemployment levels projected to stay below 4.5%, the labour market remains tight, offering both opportunities and challenges for employers. While the job market reflects the country’s economic strength, ongoing shifts in work models, sectoral trends, and regional dynamics paint a more nuanced picture of Ireland’s workforce.
The Evolution of Work in Ireland: Remote vs. Hybrid Models
The pandemic introduced widespread flexibility in work arrangements, but recent data suggests a clear shift in preferences and employer offerings. Fully remote job opportunities are steadily declining, now representing just 1.9% of all job postings as of Q3 2024. Over the past year, remote work vacancies have fallen by 9.5% each quarter, highlighting a steady move away from full-time remote setups.
However, hybrid work models continue to hold their ground. Hybrid job postings accounted for 11-12% of vacancies over the past six quarters, signaling a stable and likely permanent feature of Ireland’s labour market. Employers are increasingly embedding hybrid arrangements into their offerings, responding to demand from jobseekers, nearly half of whom would turn down roles lacking flexible options.
For businesses, embracing hybrid work not only meets candidate expectations but also provides a competitive edge in a tight talent market.
Top Hiring Sectors in Ireland: Construction Takes the Lead
While some industries are navigating headwinds, others are thriving. A breakdown of Ireland’s top hiring sectors in Q3 2024 reveals fascinating trends:
- Hospitality (Catering): Leading the way with 11% of total job openings, highlighting Ireland’s continued focus on tourism and hospitality.
- Construction: One of the fastest-growing sectors, with job vacancies up 31% year-on-year. This boom is driven by Ireland’s ambitious housing goals and high levels of building activity. Roles such as Quantity Surveyors, Construction Managers, and EHS Advisors are especially in demand.
- Healthcare and Medical Professionals: As Ireland’s population grows, healthcare remains a priority sector for hiring.
- Management, Sales, and Customer Service: These roles complete the top five, reflecting demand for leadership and customer-facing skills.
- IT Sector: While IT saw a 10% drop in vacancies compared to the previous quarter, it remains a key player in Ireland’s economy. The sector is recalibrating after a surge in demand during the pandemic.
The standout performer is the construction sector, which has overtaken IT in hiring activity. With Ireland’s housing crisis driving demand for skilled professionals, this sector is expected to remain robust well into 2025.
Job Vacancies Across Ireland: Regional Highlights
Job vacancy trends vary significantly by region, reflecting local economic dynamics:
- Galway: A standout performer, Galway recorded a 14% rise in job postings in Q3 2024—the city’s first major increase since 2022.
- Dublin and Limerick: Both saw declines in job vacancies, with Dublin down 10% and Limerick dropping 14%.
- Other Regions: Waterford and other smaller cities experienced steadier performance, with some areas still exceeding pre-COVID vacancy levels.
These regional trends highlight how domestic sectors are thriving, while multinational-dependent areas face challenges amidst global uncertainties.
Domestic vs. Multinational Sectors: A Mixed Picture
The Irish job market reveals a divide between domestic and multinational sectors. Local industries such as retail, arts, and entertainment are showing strong growth, benefiting from rising wages, easing inflation, and stabilizing interest rates. Construction and property-related activities also continue to perform well, underpinned by housing development goals.
Conversely, multinational-dominated sectors like IT, banking, and finance have seen declines in job vacancies. Export-oriented industries, such as manufacturing, also experienced reduced hiring activity, reflecting caution amidst global economic uncertainties like oil price volatility and geopolitical tensions.
What the Decline in Remote Work Means for Ireland
Fully remote jobs are on a downward trajectory, now accounting for just 1.9% of total vacancies. This figure is 63% below its 2022 peak, signaling a fundamental shift in Ireland’s workforce. Hybrid work, however, remains more resilient, offering the flexibility of remote work with the benefits of in-person collaboration. Over the last six quarters, hybrid vacancies have held steady at around 11-12%, cementing this model as a key feature of post-pandemic work in Ireland.
Outlook for 2025: Ireland’s Job Market at a Glance
As we move into 2025, several trends are becoming clear:
- Hybrid Work is Here to Stay: While remote jobs continue to decline, hybrid work remains a cornerstone of Ireland’s evolving workforce, appealing to both employers and jobseekers.
- Construction Booms: High demand for construction professionals will persist, driven by the need for housing and infrastructure projects.
- Local Sectors Thrive: Retail, entertainment, and domestic consumer industries are showing resilience, buoyed by economic stability and rising consumer confidence.
- Multinationals Face Challenges: Global uncertainties and sector-specific issues are weighing on multinational-dominated industries, leading to cautious hiring strategies.
Ireland’s job market is navigating a balancing act between growth and caution, with flexible work arrangements, domestic sector growth, and regional opportunities driving the conversation. For jobseekers and employers alike, adapting to these changes will be key to staying competitive in 2025 and beyond.
