The report suggests that despite Ireland’s positive rental market, progress is being stalled.
New research published by the Employment and Recruitment Federation and supported by ICON Accounting has revealed how Ireland’s skills shortage is starting to hold back further growth for organisations, despite some positive numbers.
A report by the Irish Labor Monthly Monitor found that more than half of contributing workers reported an increase in vacancies and 43% said there was a greater demand for contract roles. 41pc reported an increase in temporary vacancies and more than half also explained that they expected vacancy rates to increase significantly over the next three months.
But despite the positive recruitment market, research has also shown that Ireland’s talent pool is not keeping pace. Of those who submitted their information, two-thirds of employers said they expected no improvement in the availability of applicants with the right skills. The report said this points to a widening gap between what employers need and what the market is currently unable to provide.
Commenting on these figures, Siobhán Kinsella, president of the Employment and Recruitment Federation, noted that this is the real challenge at the moment, not unemployment, but a lack of relevant skills.
He said, “What this data clearly shows is that Ireland does not have a jobs problem, it has a skills problem.
“This is still a strong job market, but it is becoming increasingly difficult and expensive for employers to hire. Businesses are facing higher costs, continued uncertainty, and rapidly changing requirements at the same time.”
He explained, if Ireland is to continue its momentum, there must be a greater commitment to training, retraining and operational readiness. “We can’t keep talking about strong employment numbers if employers can’t find the people they need to fill the available roles,” he said.
Competing needs
The report noted that in February the unemployment rate in Ireland was below 5pc, resulting in a situation where many employers find themselves competing with a limited number of skilled workers, across technology, engineering, healthcare, logistics and financial services, among others.
Youth unemployment figures have also been shown to be very high, with the latest CSO figures showing a rate of 12.4pc for 15 to 24-year-olds, highlighting the ongoing challenge of ensuring people entering the workforce have the right skills to access the roles available.
Kinsella noted that the findings show a much broader pattern that is now seen in all developed economies, where the issue is no longer whether job opportunities are created, but whether countries have the people and capacity needed to support continued growth.
He said, “What Ireland is going through is part of a much wider transformation for all developed economies.
“But this next phase will depend on whether we invest properly in skills, support people to retrain and make it easier for employers to find the talent they need in fields like AI, machine learning, engineering and healthcare. That’s where the real focus needs to be.”
Earlier this month, WiCyS and FourOne Insights published similar data examining how skills-based online practices can positively impact employees and their organizations.
The study ‘ROI for Agility: How Cybersecurity Talent Management Best Practices Improve the Bottom Line’ suggested that skills-based, talent-friendly practices often generate the highest returns for an organization and its employees.
The report said, “High-ROI practices, such as transparent promotion processes, superior funding, access to skills development and training and networking with trusted third-party partners, can further reduce the friction of recruitment and retention. Over time, they open up historically limited avenues for advancement, especially for women.”
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