Irish Tech Companies Return to Optimism in Q4
Ireland Net Employment Outlook of +29% signals a return to significant growth in jobs
IT sector hiring confidence rebounds with a Net Employment Outlook of +39%
Hiring optimism is driven by demand for specialist roles like AI specialists, rather than volume hiring for generalists
More than half of Irish employers reveal they expect AI to create more jobs than it replaces over the next two years
Ireland’s Information Technology sector expects a resurgence in hiring confidence following consecutive quarters of stagnant recruitment, according to the latest ManpowerGroup Employment Outlook Survey. The sector’s Net Employment Outlook has increased to +39%, up from +6% last quarter. This marks the highest level of optimism since the post-pandemic hiring boom.
Despite this, hiring at volume is expected to remain subdued, with high-skilled roles like AI specialists, data engineers, cloud architects, cybersecurity specialists, and developers igniting tech sector hiring. This follows findings that 51% of employers say they expect AI adoption to lead to increased headcounts over the next two years.[1]
“Following a period of redundancies and hiring freezes made in response to economic turbulence and post-pandemic over-hiring, the tech sector is now looking to the future with a sense of cautious optimism.” said Jonny Edgar, Managing Director, ManpowerGroup Ireland. “Businesses have restructured with sustainable headcounts, and mounting confidence in the growing economy together with a surge in demand for specialist tech skills is fuelling positive hiring plans.”
“Employers feel confident about the potential of AI to create more jobs than it replaces, and there’s a growing appetite for specialists in generative AI and machine learning. However, we know it’s going to be a mixed picture, and it remains to be seen whether businesses’ optimistic attitude is reflected in the reality of hiring trends over the coming years.
The Information Technology sector’s revived confidence is most pronounced in Dublin, home to many of Ireland’s tech multinationals. Here, IT employers report a Net Employment Outlook of +41%, a marked increase on the -20% in Q1 and +10% in Q3 of this year. Employers in Dublin also reported the highest levels of AI adoption at 41%.
Large Enterprises, businesses with more than 5000 employees, also report a rebound in hiring optimism, with +38% intending to hire in the fourth quarter. This is an increase of 22 percentage-points on last quarter and up 23 percentage-points year-over-year.
“The stability of a growing economy has given big tech the confidence to plan for growth, and most of that is increasingly concentrated in the capital.” Edgar continues. “Ireland’s GDP is projected to grow by 1.2% in 2024 and 3.6% in 2025– the highest rate of any country in the Eurozone. With inflation cooling and workforce participation increasing, businesses have reason to be optimistic.”
The Government, Public Service and Education sector report the highest Net Employment Outlook of any sector at +41%, reflecting an increase in public sector hiring driving job creation compared to prior years. The Transport, Logistics and Automotive sector also reports strong hiring confidence (+39%) followed by Industrials & Materials (+36%).
Regionally, Munster leads the pack with a Net Employment Outlook of +41%, up 22 percentage-points on last quarter, followed by Dublin (+30%), Connaught (+26%), Ulster – Cavan, Donegal, and Monahan (+21%), and Leinster (+12%).
“AI adoption across Ireland is sparking change in an already rapidly evolving skills landscape, and we’re seeing positive labour market activity across the economy as a result of growing economic confidence. However, hiring demand is being driven by hard-to-fill roles where demand far outpaces supply, with 90% of businesses in the tech space reporting difficulty filling roles.[3]”
“As they shift towards growth, businesses should consider a wider pool of candidates who have potential, focusing on a holistic view of past experience, aptitude, and transferable skills. Being prepared to train new hires, rather than relying on a pedigree of existing industry experience, will be key to meeting skills needs.”
[1] ManpowerGroup Employment Outlook Survey Q3 2024 https://www.manpowergroup.ie/blog/2024/07/manpowergroup-reports-positive-net-employment-outlook-of-25-percent-for-q3-2024
[2] European Commission, May 2024 https://ireland.representation.ec.europa.eu/news-and-events/news/spring-2024-economic-forecast-commission-maintains-its-growth-forecast-ireland-2024-2024-05-15_en
[3] ManpowerGroup Talent Shortage Survey 2024 https://www.manpowergroup.ie/blog/2024/02/record-high-of-81-percent-of-irish-companies-are-struggling-to-attract-skilled-talent