Entry-level hiring in “AI-augmented occupations” in Ireland declined by 16 per cent in the second quarter of 2026, according to a new survey of labour market trends.
While IDA Ireland’s latest Labour Market Pulse report indicated that Ireland was entering the artificial intelligence (AI) era in “a position of strength”, ranking fourth globally for AI engineering talent, it warned there were “some emerging risks”.
Chief among them was the risk to graduate-level or junior recruitment.
It found that entry-level hiring in occupations that were using AI declined by 16.2 per cent (on an annual basis) between April and June this year, compared with a 10.8 per cent decline across those occupations overall.
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“Within roles such as software engineering and data analysis, there are signs of a sharper pullback in junior recruitment, although the extent to which AI is driving this remains unclear,” it said.
The survey, produced in partnership with Microsoft and LinkedIn, was published to coincide with the International AI Summit taking place in Dublin this week, the flagship AI event of the State’s European Union presidency.
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With more and more firms adopting AI, the survey found the State ranked fourth globally for AI engineering talent concentration, with 1.31 per cent of LinkedIn members in the Republic classified as AI engineering talent.
“Only Israel, Singapore and Luxembourg rank higher, with Ireland ahead of Germany, the UK and France,” the report noted.
The Republic also ranked fourth globally for net AI talent migration, indicating that the State continues to attract AI talent in an increasingly competitive global market.
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While hiring here has moderated in line with international trends, the Irish labour market continues “to demonstrate greater resilience than selected European peers”, the report said.
In September, the LinkedIn hiring rate for the Republic was down 6.7 per cent year on year, compared with declines of 11.3 per cent in the UK and 18.1 per cent in Germany.
The report concluded the data showed “no clear evidence that the hiring slowdown is concentrated in jobs most exposed to AI or is disproportionately affecting entry-level recruitment”.
It noted that entry-level hiring declined by 8.3 per cent year on year in September, broadly in line with the 6.7 per cent decline in overall hiring.
“Ranking fourth in the world for AI talent sends a powerful signal to investors, and our focus now is on building on that advantage through continued investment in talent, infrastructure and adoption,” said IDA Ireland chief executive Michael Lohan.
Minister for Enterprise Peter Burke said: “The Irish labour market is performing well with employment levels and rates remaining high, and unemployment low at close to 5 per cent. Ireland has moved quickly in adopting AI, with strong AI usage and diffusion across our economy.
“We need to stay ahead and build on this momentum to fully reap the benefits from AI, a core theme of this week’s International AI Summit as part of Ireland’s EU presidency.”
