Permanent jobs are taking longer to fill despite wage pressures easing, according to a report from Employment and Recruitment Federation (ERF).
Almost two third of recruiters reported a longer time-to-hire for permanent positions in May compared to three months before, while just three per cent saw the time shorten. A similar pattern was noted for contract roles, where 43 per cent noted an increase in time taken to fill roles.
“The standout signal in this month’s data is the lengthening time it is taking to fill permanent roles,” said Siobhán Kinsella, ERF president.
“With almost two-thirds of recruiters reporting a longer hiring cycle, the constraint in the market is no longer simply the number of vacancies, it is the availability of the right candidates to fill them,” she added.
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The supply of qualified candidates is expected to remain tight, with 55 per cent of recruiters predicting no change in availability over the next three months and just 29 per cent expecting an improvement.
Meanwhile pay pressure eased, bucking market trends of increased pressure in recent years. For 72 per cent of respondents, permanent salaries and rates of pay held steady in May, with a further 27 per cent reporting an increase in their pay, and just one per cent seeing any decrease.
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This stability was more pronounced in contract and temporary work, where 85 per cent and 76 per cent reported no change in pay respectively.
The figures come following comments from the Central Bank last month saying that surging energy prices from the US-Israeli war with Iran would all but wipe out any wage increases.
“After a sustained period of wage inflation, that is a meaningful shift and a sign of a market that is rebalancing rather than overheating,” said Kinsella.
“Demand remains healthy, particularly in temporary and contract work, where employers are clearly valuing flexibility, but with candidate supply expected to stay tight, the businesses that will win talent over the coming months are those that move decisively and invest in a strong, efficient hiring process,” she added.
Looking to the future, some 35 per cent of recruiters expect vacancy numbers to rise over the next three months, although just under half expect no change.
New business activity was modest but broadly based, with 45 per cent of firms taking on one to two new clients in May and a further 29 per cent taking on three or more.
