The recently published Labour Force Survey for quarter four (Q4), 2025 showed that the labour force rose by 2.4 per cent, or 68,800 people, to 2,961,300 in the final quarter. Of those, the number with employment rose by 2 per cent, or 56,700, to 2,833,100 people in the full year, with a predicted rise of 1 to 1.5 per cent in 2026, though stockbroker Davy believes that it will be 2 per cent.
The Labour Force Survey for Q4 2025 showed the fastest growing sectors for employment through the year were construction, industry and “public sector dominated areas such as education and health”. It found that employment in the information and communications technology sector was down 7 per cent to 184,000.
Ireland’s unique position in the EU as the base of multiple US-based information technology and pharmaceutical companies has meant the overall number of people at work has risen since 2019 by close to 500,000 to a record 2,833,100. This has led to wage pressures and skills shortages, and added to pressure on housing and infrastructure, disproportionately affecting young people exiting education.
Although the unemployment rate was revised down again, to 4.6 per cent in Q4 2025, declining from 4.9 per cent in Q3 2025, the employment market is becoming a more difficult place for younger people in particular, which may be bad news for those considering graduate programmes to secure entry to the labour market.
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In a slowing market, companies tend to cut hiring of younger employees. And despite reasonable resilience in consumer spending, some domestic sectors – such as retail and hospitality – which traditionally employ younger people, are not taking on as many. This is one reason why the youth unemployment rate has risen to 12 per cent, though most people in younger age groups are in further and higher education.
A recent Grant Thornton survey showed 54 per cent of companies were confident about the outlook this year, down from 81 per cent a year ago, a “significant deterioration in sentiment over the past year as Irish firms grapple with increasing global uncertainty and rising cost pressures”. The uncertainty generated by the 150-day time frame of the latest tariffs imposed by US president Donald Trump and the conflict in Iran only adds to this uncertainty. In turn, this may slow new investment and job growth.
Postgraduate & MBA Options 2026
Meanwhile, the latest assessment from recruiter Morgan McKinley reported a 12 per cent fall in job openings in the final quarter compared with the previous three months, though this was seen as “a recalibration” rather than a retrenchment.
Particularly concerning for graduates and those considering postgraduate options is the fear that artificial intelligence would remove the first rung on the ladder for many professional jobs – doing the work previously done by juniors in accountancy practices, law firms and so on – is being borne out, at least in part, by lower recruitment in these areas, both here and internationally.
Meanwhile, the most notable negative in the latest jobs data was a 12,700 annual fall in employment in the technology sector. It is impossible to disentangle how much of this is due to artificial intelligence (AI). But what we do know is, first, AI is becoming increasingly powerful in areas such as software and data processing and analysis, and, second, that companies diverting spending into AI are under pressure to get returns and this is leading to some retrenchment elsewhere.
In Ireland, a recent report from the Department of Finance points out that, in general, younger people are harder hit in times of uncertainty in the jobs market. Over the past year, while total job numbers have expanded, the numbers at work in the 15- to 24-year-old age group appear to be stalling.
Younger people are also in the front line of the hit from AI. The Morgan McKinley report confirms that it is seeing slowing demand for junior and generalist roles, though, of course, AI is also creating new demand for those who can harness its expertise.
The department’s report points out that in tech and financial services, two sectors seen to be at higher risk from AI, employment to 15- to 29-year-olds has fallen over the past two years. In tech, the numbers in this age group employed fell by 20 per cent, while there was a 12 per cent rise in employment among 30- to 59-year-olds.
The immediate problem for graduates and other younger people seeking work is that two things are happening at once. Employment growth generally is slowing and this is hitting hiring at all levels. And the rapid increase in AI capabilities looks now to be having a measurable impact and will, in time, revolutionise a lot of data processing work.
Which sectors are leading in terms of employment opportunities?
On a positive note, construction employment is growing and will be supported by the Government’s infrastructure programme, and many IDA-supported companies, notably in areas such as pharma, continue to hire. Many companies report that they are slowing hiring and at the same time are suffering from skills shortages.
The strength of the multinational sector over the past decade has created conditions for considerable employment growth in the domestic economy. The tourism and hospitality sector, alongside retail, arts and entertainment, is showing strong growth. As the State winds down its contracts with hotels across the country accommodating Ukrainian refugees and asylum seekers, this growth should continue into 2026.
With the Government aiming to build 60,000 homes annually by 2030, construction is one of the fastest-growing sectors, with job vacancies up 31 per cent year-on-year.
Roles such as quantity surveyors, construction managers, and environmental, health and safety advisers are in high demand.
Ireland’s population growth in recent years has been nine times the EU average of 0.2 per cent. Given this and the increase in the number of retirees living longer, healthier lives, employment opportunities in all healthcare and medical roles continue to expand.
Demand for leadership and customer-facing skills in management, sales, and customer service continues to provide excellent opportunities in the domestic economy.
Opportunities in IT roles have contracted over the past two years as many multinationals cut staff numbers worldwide. However, IT remains a key player in Ireland’s economy. The international banking and finance sectors are also displaying some caution in the recruitment market as they await the long-term fallout from the Trump on-again-off-again tariffs.
Over time, younger people adjust their educational choices to the employment market. But in the short term, a young solicitor, accountant or software developer may struggle to secure a full-time appointment.
How to use education to maximise your potential?
As in any increasingly competitive job market, it is always worth considering what sets you apart from other candidates when applying for a job.
A further engagement with education as a way of entering the labour market or diversifying into other areas of economic activity will be an obvious option for many. Undertaking a postgraduate programme is one way of doing that.
Undertaking a level nine or 10 postgraduate option is quite a commitment and will take time and money to complete. However, those completing a postgrad will have the advantage of adding a new set of cross-sectoral skills that will complement their CV and enhance their employability.
There is an increasing confluence between sectors such as information and communications technology (ICT), business and engineering, which were once considered to be unique disciplines. ICT permeates all sectors of the economy and, similarly, strong business skills are relevant across many of them.
Accounting firms do not only hire accountants – they are also on the lookout for marketing, IT and engineering graduates. Arts and journalism graduates who can bring communications and social media skills are sought after by firms that need to expand their social media and online presence.
Data skills
Data analytics is now the fastest-growing skill in demand and this is likely to continue in the years ahead. The combination of data and marketing skills is the most highly sought-after combination.
With working from home on a number of days a week now embedded in many workers’ lives, using a mix of company-owned devices along with their own equipment, there is an increased demand for dedicated cybersecurity functions within companies.
Evolving IT security threats, magnified by the long-term shift to working from home and the corresponding need for greater data protection, are feeding demand for IT security roles. Ever-increasing investment in web-based services has created a shortage of software developers with experience in Java, NET, Python, Ruby on Rails and Scala, in particular.
The intersection between finance and technology has undergone a huge shift, which is changing the face of the financial services landscape.
With dozens of Irish start-ups operating in this area, the expectation is for significant growth in the coming years. The opportunities for hybrid professionals – graduates with skills spanning financial services and technology – will increase as the finance and technology sector sees more collaboration between Government, education and industry.
In addition to sector-specific skills, cross-sectoral employability skills are increasingly sought by employers. These include people skills, critical/analytical thinking skills, management skills, creativity, design and innovation, entrepreneurialism, teamwork, communications and business acumen. Sought-after skills also include ICT and languages.
One skill that comes with the acquisition of foreign languages is cultural awareness – something that will be vitally important in developing our markets beyond the US and the rest of the English-speaking world.
Languages in demand include German, French, Spanish, Italian, Portuguese and the Nordic languages. There is a growing demand for Mandarin as Ireland rapidly expands its trade in goods and services with China. With the inclusion of Irish as a full working language of the EU from January 2022, there are also growing opportunities for graduates with proficiency in Gaeilge.
Springboard
For both undergraduates and postgrads there may be a gap between the skills employers are looking for and the skills you will be leaving college with shortly. Bridging this gap is a central focus of the Government through the Springboard+ programme.
Springboard is a strategy that targets funding of free higher education courses to enable jobseekers to upskill or reskill in areas where there are identified labour market skills shortages or employment opportunities.
Springboard courses range from levels six to nine on the National Framework of Qualifications. Courses are delivered in areas such as ICT, manufacturing, international financial services, hospitality, and entrepreneurial/business start-up skills. Work placements are offered on almost all courses.
The ICT skills conversion programme is targeted at jobseekers who already hold a level eight or equivalent qualification and have the capacity and underlying aptitude to undergo an intensive full-time programme of study and work experience, to acquire honours degree-level ICT programming skills. The ICT skills conversion programme is also available to eligible participants on a part-time, two-year option.
Springboard courses and the ICT skills conversion programme are now run as a joint initiative under the brand Springboard+ and are free. Springboard, which incorporates Springboard courses and the full-time and part-time ICT skills conversion programme, provides for 7,719 places on 249 courses in 37 public and private educational institutions throughout Ireland.
All courses selected for funding under Springboard are in areas of identified enterprise skills needs. Courses were selected, following a competitive call for proposals, by an independent evaluation panel using published criteria that included value for money, flexible delivery, engagement with industry and skills relevance.
Further information on Springboard+, including entry requirements and eligibility criteria, is available on the dedicated information and applications website: springboardcourses.ie. Details of Springboard+ 2026 courses are not yet published, but will be available in late spring/early summer. Applications are submitted online and decisions around the award of places on the programmes are a matter for individual course providers.
Graduate recruitment and training
Every year, dozens of companies across a wide range of sectors recruit graduates and postgraduates. A graduate training programme is a way of easing new entrants into the world of work and equipping them with the necessary skills required by the organisation.
Graduate training programmes tend to last up to two years, and some will offer opportunities in different areas of the business. These programmes offer the opportunity to learn on the job, gain experience and earn money. Graduate training programmes can be a significant stepping stone to a permanent job.
Examples of graduate recruitment positions currently offered by some of Ireland’s leading companies are listed on the gradireland.com website. The careers portal website careersportal.ie also carries high-quality, up-to-date information about graduate opportunities.
