Ireland Quarterly Employment Monitor: Decline In Job Openings Highlights Changing Dynamics In The Job Market With Sectors Adopting More Selective Hiring Practices

• Exodus of young professionals leads to ‘brain drain’ across multiple sectors
• Demand for ESG specialists on the rise

The Morgan McKinley Quarterly Employment Monitor registered a slight decrease of 2% in the number of professional job openings in Q3 2023 compared to the previous quarter across all professional sectors.

The jobs market has shown consistency, with August being the strongest month of the quarter, and September witnessing a decrease of 16.7% in job opportunities, attributable to various factors, such as companies reevaluating their hiring needs, seasonal variations and continued economic uncertainties.

Permanent positions continued to dominate the jobs market, representing 65% of professional job offers in Q3. This is a significant 17% increase in the number of permanent positions compared to the immediately prior quarter. However, compared to the same quarter a year ago, there was a 34% decrease in permanent positions and an 8% decrease in contract positions.

The report recorded a 21% decrease in the number of professional job seekers between Q2 and Q3. This reduction may be partially attributed to the large number of job seekers recorded in April 2023, particularly within banking and financial services, resulting from a strong influx of graduate candidates. Compared to the same period in 2022, there was a 6.5% decrease in the number of job seekers in Q3 2023

Trayc Keevans, Global FDI Director, Morgan McKinley Ireland, said:

“Several key sectors in Ireland saw notable developments in the past quarter. The life science and engineering sectors experienced a remarkable 24% increase in hiring demand. Multinational companies benefited from this growth, but it posed challenges for SMEs struggling to compete and maintain competitive compensation levels. Recruitment demand focused on specialised roles like biologics experts who understand complex biological systems, regulatory affairs professionals ensuring compliance, and qualified persons (QPs) certifying product quality.

“In engineering, senior roles in maintenance engineering and reliability saw rising demand due to facility expansions. Companies faced difficulties attracting local automation engineers and often sought talent overseas. The continued limited availability of accommodation in Ireland further complicated recruitment efforts.

“Despite layoffs at major tech firms last quarter, the demand for tech talent remains robust. Laid-off professionals are quickly rehired due to sector competitiveness. Cybersecurity roles are in high demand, driven by cyber threats in financial services. QA and software testing positions are growing, reflecting a return to traditional tech roles. DevOps engineers and full-stack developers are also seeing increased demand for company-specific needs. Companies are seeking to hire senior-level AI talent to lead development.

“While salaries in the technology industry remain competitive, they have continued to level off due to cautious budgeting practices. Rather than replacing departing staff, companies focus on improving existing workforce productivity. Benefit packages and remote work options are becoming crucial in attracting tech talent, often favoured over higher salaries.

“In Q3 of this year, the financial services sector experienced a slight decline both in professionals entering the market and in job openings. This was primarily due to extended hiring processes and a cautious approach by employers, many of whom temporarily halted recruitment to assess budgets for 2024. However, a return to hiring was observed in September, particularly in banking, insurance, asset management and payments.

“Roles related to customer experience, complaints, and resolutions were in high demand, driven by the exit of major players like KBC and Ulster Bank earlier in the year. This departure increased workload for other companies, leading to the need for growth in customer-facing roles and support functions. Corporate and investment banking roles were in demand due to ongoing infrastructural and sustainability projects, as well as the expansion of certain banking organisations following the closures of international banks in the domestic market.

“Cybersecurity expertise remained in demand due to escalating sophistication and frequency of cyber threats. Companies exhibited flexibility for skilled cybersecurity professionals, leading to increased compensation. Digital transformation projects drove hiring in application development, payments, customer analytics, regulatory reporting, data quality reporting, and cloud implementation. Roles such as data architects, data analytics professionals, data science managers, and data science analysts saw increased demand.

“The need for environmental, social and governance (ESG) specialists continued to rise, but finding qualified candidates with niche skills was a challenge. Companies competed for top ESG talent with higher salaries and benefits.

“In the accountancy and finance sector, stability was the theme. Consistent demand for newly qualified accountants for permanent positions persisted due to a shortage of this talent, with many opting to emigrate for opportunities in countries like Australia and Canada. On the flip side, newly qualified accountants were increasingly interested in temporary positions to gain post-qualification experience before emigrating. To retain local talent and counteract emigration factors like high living costs and limited affordable accommodation, companies prioritised talent retention.

“Candidates with expertise in green finance were in high demand but in short supply, reflecting the growth in sustainable finance job openings. ESG considerations played a significant role in hiring decisions, particularly among the ‘Big 4’ professional services firms actively recruiting for ESG-related consultancy positions.

“The legal sector saw a 15% decline in job openings, with hiring freezes attributed to budgetary uncertainties and inflationary pressures impacting the hiring of legal professionals. However, there was a resurgence in demand for energy lawyers, both in private practice and industry, following a temporary hold due to the Ukrainian conflict.

“The quarter witnessed a 'brain drain' as Irish legal professionals continued to migrate to US law firms based in London, enticed by higher compensation. Salaries remained stable in Ireland, prompting junior lawyers to seek higher pay and, a perceived, more affordable standard of living in the UK. Conversely, Ireland attracted professionals specialising in commercial law from the UK, Australia, and New Zealand, including returning expatriates and lawyers seeking international experience, drawn by Ireland's Common Law system and international opportunities."

“The construction sector grappled with challenges, primarily the undersupply of recent graduates and junior-level professionals. Accommodation issues continued to hinder the hiring of overseas talent into Ireland and the retention of young construction professionals in the country, as many sought opportunities in the USA and Canada.

“While the demand for permanent positions remained consistent, contract positions increased due to the start of large-scale projects. Quantity surveyors, site engineers, project managers, site planners, and mechanical and electrical staff were in high demand. Employers sought professionals skilled in site-setting, construction site management, civil design, and cost management for these complex projects.”

“The recent Budget introduced positive tax changes for professional workers, such as raising the lower tax threshold by €2,000 and reducing the Universal Social Charge from 4.5% to 4%. However, the increase in renters' tax credit from €500 to €750 may not sufficiently address the current housing challenges. Addressing the housing crisis and making significant strides toward improving housing availability and affordability is essential to retain and attract talent across various sectors, creating a more attractive environment for professionals to stay and build their future here."

Current most in-demand positions by discipline:

Technology: Software Developers, Data Analysts, Cybersecurity Managers, Cybersecurity Engineers, Cybersecurity Analysts, QA and Software Testing Specialists, DevOps Engineers, Full-Stack Developers, Power BI Developers, AI Implementation Specialists, Data Scientists, and Data Science Managers (with expertise in machine learning and predictive analytics).

Financial Services: Customer Experience Specialists, Complaints and Resolutions Specialists, Corporate Relationship Manager, Corporate Development Analyst, Corporate Portfolio Manager, Insurance Underwriters, Claims Specialists, Insurance Brokers, Payment Specialists, Operations Managers, Compliance Specialists, Financial Advisors, Pension Specialists, Quality Assurance (QA) Professionals, Learning and Development Managers, Advisors, Data Analysts, Cybersecurity Experts, Data Science Managers, Data Science Analysts, Customer Data Analyst, Regulatory Reporting Specialists, Data Quality Reporting Specialists, Investment Managers, Portfolio Managers, Environmental, Social, and Governance (ESG) Specialists.

Accounting & Financing: Financial Accountant, Newly Qualified Accountants (Big 4/Top 10 trained), Senior Accountants with 2-5 years of post-qualification experience, Tax Accountants, Tax Managers, Accounts Payable Specialists, Payroll Administrators, Financial Accountants, Accounts Assistants, Case Managers (Financial Services), Credit Controllers.

Life Sciences & Engineering: Electrical Engineers, Biologists, Regulatory Affairs Specialists, Qualified Persons (QPs), Maintenance Engineers, Cleaning Validation Engineers.

Projects, Transformation & Change: Project Managers, Business Analysts, Financial Analysts, Professionals with expertise in Enterprise Resource Planning (ERP) systems, SAP Business Analysts, SAP Functional Analysts, SAP Data Analysts, Data Analysts, Data Scientists, Data Engineer, and Data Transformation Specialist.

Business Support: Executive Assistants (EAs), Operations Managers, Legal Secretaries, Legal Receptionists, Receptionists, Office Administrators and Sales Administrators.

Human Resources: HR Operations Administrators and HR Managers, Learning and Development Specialists, and Learning and Development Managers.

Construction: Quantity Surveyors, Site Engineers, Project Managers, Design Engineers, Mechanical Project Managers, Electrical Project Managers.

Supply Chain & Procurement: Mid-level Purchasing/Procurement roles, Production Supervisors, Production Operators.

Multilingual: Sales Development Representatives, Business Development Representatives, Account Managers, Customer Support Representatives.

Marketing: Marketing Managers, Digital Marketing Executives, Communications Managers, Brand Managers/ Assistant Brand Managers, Consumer Insights Managers/ Market Research Managers.

Sales: Sales Executives, Technical Sales Executives, Sales Managers, Technical Sales Managers, Area Sales Managers

Legal: Employment Lawyers, Commercial Lawyers, Energy Lawyers, Corporate Lawyers, Property Lawyers.

Executive: Head of Risk, Head of Compliance, Head of Operational Resilience, Head of Finance