A new report has highlighted an emerging trend in Ireland where employers are quietly reducing their workforces through what has been termed “quiet redundancies.” The Morgan McKinley Quarterly Employment Monitor reveals that these stealth job cuts are taking place through methods such as non-renewal of contracts, scaled-back team structures, and discreet workforce adjustments, all of which are not immediately visible in official employment figures.
While the exact causes of these adjustments are yet to be fully understood, the report points to a combination of global economic uncertainty, the growing influence of artificial intelligence (AI) on industries, and new US tariffs as potential drivers. These factors are prompting companies to move away from reactive hiring and instead focus on more cautious, long-term workforce planning.
The first quarter of 2025 began with cautiously optimistic signs, as professional job opportunities increased by 2% year-on-year and by 7% from the previous quarter. At the same time, the number of professional job seekers surged by 16% compared to the previous year, although there was a slight 4% decrease from the last quarter of 2024. This suggests a potential stabilisation in job market movement.
The report highlights that while Ireland’s labor market showed resilience in the wake of the pandemic, the introduction of new US tariffs and the growing trend of quiet redundancies across various sectors may soon test this strength. As companies grapple with shifting economic and regulatory conditions, many are increasingly relying on AI to manage recruitment processes, including using AI to generate or enhance CVs.
However, the report notes concerns from employers about the authenticity of AI-generated applications, with some employers reporting mismatches between what appears on the CV and the candidate’s performance during interviews. This has placed greater pressure on screening processes and raised concerns about the accuracy of AI tools in assessing applicants, according to Trayc Keevans, Global FDI Director at Morgan McKinley.
Another notable finding in the report was the subtle shift in workplace inclusion practices. While some multinationals have quietly reduced their formal Diversity, Equality, and Inclusion (DEI) budgets or job titles, Irish employers are continuing to focus on inclusion through other means, such as employee engagement, community involvement, and fairness, without the explicit use of DEI labels.
Despite these challenges, Morgan McKinley’s data suggests that hiring confidence remains strong in key sectors, particularly technology, financial services, and construction. Employers, however, are navigating a complex mix of influences, from economic challenges and evolving global regulations to the rapid advancement of AI and changing workplace expectations.
The data for this report is based on Morgan McKinley’s monthly records of new permanent and contract job vacancies, as well as new candidates registering with the firm for employment. As Ireland’s job market continues to evolve, both employers and job seekers are adjusting to new realities in the workforce.
