Irish employers shift to skills-focused hiring as labour market discipline intensifies, report finds

Irish employers are maintaining hiring activity whilst implementing tighter headcount controls and reserving salary premiums exclusively for skills deemed critical to delivery or risk management, according to Morgan McKinley's 2026 Irish Salary Guide.

Silicon Republic reported that the research, described as Ireland's most comprehensive analysis of pay across professional disciplines, found that whilst the labour market remains active, it has become far more disciplined in its approach to workforce expansion.

The report stated: "Hiring has become more selective. Employers are sharpening expectations around both technical capability and soft skills, and many have increased on-site requirements."

Life sciences and engineering hiring remained stable throughout 2025 despite some organisations adopting a cautious approach to permanent headcount due to internal restructures. Candidates with biopharmaceutical experience were in short supply, resulting in intense competition for talent, lengthy recruitment processes and a high incidence of counter-offers.

Extended hiring processes led to candidates exiting due to competing offers, thereby reinforcing ongoing talent shortages. The contract market remained robust, supported by large-scale capital investment projects across biopharma and medtech, with organisations relying heavily on contractors to deliver specialist, project-based expertise.

In the technology ecosystem, the most in-demand roles were data engineering, cybersecurity analytics and risk specialisation, machine learning engineering and data science, AI auditing and AI ethics, and automation and DevOps positions.

Trayc Keevans, global FDI director at Morgan McKinley, said: "Employers are not in hiring retreat, but they are being far more intentional."

She added that demand remains strong where skills directly enable transformation, regulatory compliance or operational continuity, but organisations are no longer responding by expanding teams or lifting salaries across the board.

Access the full story on the complete 2026 Irish Salary Guide and skills demand analysis.