The proportion of Irish businesses planning to expand their workforce next year has fallen, according to new research from business group Ibec, pointing to a slowdown in hiring momentum as companies adjust to economic uncertainty and regulatory change.
Ibec’s Pay and Resourcing Forecast Report found that 37% of firms expect to increase headcount in 2026, down from 41% in 2025 and 45% in 2024. More than half of respondents (56%) plan to keep staffing levels steady, while just 7% anticipate job cuts.
Although most new hires are still expected to be for permanent positions, the share has dropped from 95% in 2025 to a forecasted 89% in 2026. The survey, which gathered responses from more than 400 senior HR professionals, identified increased production and demand, business expansion, and building a future talent pipeline as the main drivers behind planned recruitment.
On pay, the report highlights continued upward pressure. Four in five companies (80%) expect to raise wages in 2026, with an average increase of 3.1%. That follows widespread pay rises in 2025, when 85% of businesses lifted salaries by an average of 3.6%. The largest increases this year were recorded in hotels, tourism and leisure, averaging 5.2%, reflecting both minimum wage adjustments and high demand for workers in the sector. Notably, no company surveyed expects to cut pay in 2026.
Maeve McElwee, Ibec’s Executive Director of Employer Relations, said the figures show stability despite softer hiring intentions. “We are seeing a slight slowdown in headcount growth, however, the overall number of companies maintaining their workforce remains strong,” she said.
She added that employers are focusing on preparing staff for a rapidly changing jobs market. “Whilst employment trends remain positive, employers are increasingly prioritising investment in the labour market to prepare workers with the skills needed for a rapidly evolving employment landscape.”
Looking ahead, McElwee warned that the introduction of new EU pay transparency rules could pose a significant compliance challenge. The directive, which must be transposed into Irish law by June 2026, will require companies to meet stricter standards on pay reporting and gender pay equity.
“The lack of detailed guidance is a serious concern for businesses,” McElwee said. “Ibec has been urging Government to publish clear employer guidance well ahead of the deadline to support preparation, ensure compliance, and avoid adding unnecessary regulatory or cost burdens beyond EU requirements.”
With a majority of companies set to hold staffing levels steady and a strong commitment to wage growth, the survey suggests Ireland’s labour market will remain resilient, though employers face headwinds from rising costs, regulatory uncertainty, and the need for skills investment.
