Nearly half of employers have reduced entry-level and graduate recruitment as rising labour costs and the growing use of artificial intelligence reshape hiring strategies, according to new research from hiring platform IrishJobs.
The IrishJobs Hiring Trends Report shows a clear shift in how organisations are building their workforces, with companies increasingly prioritising experienced candidates and specialised skill sets over traditional early-career intake. Two-thirds of employers said the skills required in their industries are changing rapidly, reflecting the impact of automation and digital transformation across sectors.
While entry-level opportunities are tightening, the broader hiring outlook remains cautiously positive. Almost half of employers said they expect to increase recruitment in the second half of 2026, suggesting that demand for talent has not weakened, but is being redirected. In addition, 83% of recruiters said hiring has become more strategic, with greater emphasis placed on filling specific, high-value roles rather than expanding headcount broadly.
The report also found that nearly 40% of employers increased recruitment in the first half of the year, highlighting a mixed but active labour market. Even within sectors experiencing technological disruption, such as IT and telecommunications, more than half of employers reported higher hiring levels over the past six months.
Demand for specialist skills remains particularly strong. More than a quarter of Irish firms are currently recruiting for artificial intelligence and machine learning roles, while cybersecurity and engineering talent are also in short supply. Around 22% of employers are seeking cybersecurity professionals, and 23% are targeting candidates with advanced technology and engineering expertise.
Christopher Paye, Country Director of The Stepstone Group Ireland, which oversees IrishJobs, said the findings reflect a labour market that remains resilient despite economic uncertainty. He noted that employers are continuing to plan for growth, especially in sectors such as manufacturing and construction, where demand for skilled workers is outpacing supply.
He added that rising labour costs and advances in AI are reshaping workforce planning, prompting companies to rebalance recruitment strategies and focus more heavily on experienced professionals with in-demand capabilities.
The study, based on responses from more than 500 HR leaders and nearly 1,000 jobseekers in Ireland during March and April, also highlights how hiring is becoming more selective. Employers are not necessarily reducing overall recruitment, but are narrowing it toward roles that align with automation, data-driven processes, and emerging technologies.
The findings suggest a labour market in transition, where traditional entry pathways are shrinking even as demand for advanced technical expertise continues to expand.
