TECH SECTOR TOPS LIST OF BUSINESSES HIRING FOR GROWTH IN Q2 2025
Among firms increasing headcounts, 38% report business growth as the primary driver behind hiring
The Information Technology sector reports the strongest appetite, with 55% planning to hire driven by organisational growth
However, a record 83% of businesses continue to report difficulty finding candidates with the skills they need
A quarter of Irish businesses plan to increase headcount in the second quarter, according to the latest ManpowerGroup Employment Outlook Survey. Ireland’s national Net Employment Outlook for Q2 2025 is +25%, remaining unchanged on last quarter.
Among employers increasing headcount, 38% report organisational growth as the primary driver, with 31% reporting backfilling vacancies, and 28% listing changing skills needs as the primary driver. However, with 83% of businesses reporting difficulty finding candidates with the right skills and unemployment at a 25-year low, businesses wanting to hire will need to explore a wide range of talent attraction strategies to meet their skills needs.
The ManpowerGroup Employment Outlook Survey is based on responses from 420 employers across Ireland. It tasks whether they intend to hire additional workers or reduce the size of their workforce in the coming quarter, April to June. It is the most comprehensive, forward-looking employment survey of its kind. In the latest survey, employers were also asked to indicate the reasons driving their decision to increase or decrease headcount.
The Dublin-based Information Technology sector reports a Net Employment Outlook of +28%, with 55% of businesses increasing headcount reporting organisational growth demanding new headcount as the primary reason for hiring. This is compared with 20% adding headcount to backfill vacancies, and 31% hiring due to changing skills needs.
“The tech sector is reporting an appetite for growth like no other.” said Jonny Edgar, Managing Director, ManpowerGroup Ireland. “Following the post-pandemic scramble for talent which resulted in over-hiring and a long stretch of hiring freezes, the sector has now stabilised in a strong position to grow sustainably. We’ve seen sharp increase in appetite for candidates with AI skills, alongside continued demand for cybersecurity, cloud, and data specialists.”
The Industrials & Materials sector – spanning engineering, construction, and manufacturing – reports a Net Employment Outlook of +32%. Employers adding new staff in this industry report changing skills needs as the primary driver (36%), followed by organisational growth (24%), and backfilling vacancies (24%).
“We’re seeing an expansion in manufacturing first hand, with several of our largest clients currently ramping up hiring levels due to increased demand, alongside recently expanded manufacturing lines in Ireland from overseas businesses. All signs point to this trend continuing in Q2.” Edgar explained.
The ManpowerGroup 2025 Talent Shortage report found 78% of Information Technology businesses and 82% of Industrials & Materials employers in Ireland found difficulty finding candidates with the skills they were looking for. While employers across Ireland reported IT & data skills were hardest to find, followed by operations & logistics and engineering skills.
“There’s a strong appetite to growth across Ireland. However, demand for IT & Engineering skills vastly outpaces the number of candidates who have what employers are looking for – with our 2025 Talent Shortage report finding talent scarcity has risen from 13% a decade ago, to a record 83% this year. Employers who want to meet their skills needs and thrive in 2025 cannot afford to wait for ready-made candidates to walk through the door
“We advise employers to place less emphasis on traditional requirements that are holding hiring back, like past job titles and arbitrary years of experience. Instead, employers should focus on hiring candidates with potential, and transferrable skills, who just need a bit of upskilling to become the right fit. The only way out of this talent shortage is through investment in skills,” Edgar concluded.