Hiring intentions among employers in Ireland have fallen from highs earlier this year to their lowest level in 2022, according to the latest ManpowerGroup employment outlook survey.

A net +26% of employers plan to hire in the coming quarter, with 43% of companies surveyed looking to expand their workforce compared to 17% planning to cut staff numbers, 38% who plan to make no changes, and 2% who are undecided.

The overall +26% figure remains elevated by historical standards but represents a notable pullback from early 2022 levels when employers sought to add jobs before near-record level inflation rapidly added to their overheads.

The technology sector recorded the sharpest fall, with hiring sentiment down 25% to +17% quarter-on-quarter, primarily driven by firms restructuring following the hiring boom of early 2022.

Slowing growth in the tech sector, rising interest rates and previous high-volume hiring campaigns have knocked confidence going into the final three months of 2022, with prominent layoffs in the previous quarter, according to ManpowerGroup.

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Double-digit hiring growth and recruitment will be driven in Q4 by SMEs outside of big tech, and hiring optimism is strongest across a range of in-demand roles in Connacht and the midlands.

The most competitive region in Ireland is Leinster though with a net employment outlook of +39%, an increase of 16 points year-on-year, ahead of Connacht (+35%), which saw its outlook increase 27 points. Munster (+28%), Dublin (+28%) and Ulster (+8%) all posted positive results.

The banking and finance sector remains Dublin’s strongest industry and a leading sector across Ireland, with an employment outlook of +33%, a decline of 16 points on last quarter’s record high and up +5 points year-on-year.

Hiring managers in companies of all sizes anticipate an increase in staffing levels in Q4, but micro firms with fewer than 10 employers showed the most intent with a net employment outlook of +39%, the highest level recorded in since ManpowerGroup started tracking data in 2005.

"Irish companies will be looking at their hiring plans more strategically going into Q4. There is still high demand for skilled talent and an ongoing talent shortage in the labour market but hiring volume will decrease as employers tighten their belts," ManpowerGroup said.

"We will see this first in Dublin, and where Dublin leads the other regions will follow. Smaller companies will be hiring in greater strength than ever before, which highlights the increasing prominence of start-up companies in Ireland.

"The waters may be getting a bit choppier, but the sails are still firmly raised with recruitment remaining buoyant as the year closes out."

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