Companies' recruitment plans are at their highest in six years with 90% of employers looking continue hiring in 2023 despite worries about an economic downturn, a new survey shows.

While tech giants Facebook, Twitter and Stripe all announced worldwide layoffs, including in Ireland, according to the survey, nine out of 10 firms plan on hiring over the next year.

Maureen Lynch, operations director at recruitment company Hays Ireland, said: "Despite headlines in recent weeks suggesting a period of economic uncertainty is on the horizon, our 2023 Salary & Recruiting Trends Guide paints a brighter picture and reaffirms that 2022 has been a positive year of economic growth in Ireland.

"Our data shows that, on balance, employers remain optimistic that 2023 will see further economic and job growth across sectors, including accountancy and finance, engineering, and healthcare."

Ms Lynch said that challenges will persist in the year ahead as employers and employees "continue to grapple with the rising cost of living and inflation and a more cautious mood in the Irish tech sector".

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"Skills shortages remain a persistent problem for employers, the majority of whom have had to increase wages to both attract new talent into the workplace and retain in-demand existing employees. This is a trend that shows no sign of slowing down in the year ahead," she said.

A majority of employers, 61%, are reporting that the cost-of-living crisis is the biggest external challenge they are expected to face in the coming year while 64% said their biggest internal challenge will be staff retention.

Over four in five, 84%, of employers increased salaries over the last year, compared to 56% who did so the year prior. Over half, 58%, say this is a direct result of the rise in the cost of living.

A large majority, 79%, of employers expect to increase salaries again in the next 12 months In addition, 42% of employers said pay remains the top reason employees moved jobs last year.

Of those surveyed, 70% offered staff a performance-related bonus this year, and 74% of employers either sometimes or always make counter offers to staff when they inform them of the decision to resign from their position.

Pay remains the top reason employees moved jobs last year (42%).

The survey was conducted as part of the Hays Salary and Recruiting Trends Guide 2023. It received over 1,600 responses from employers and professionals across Ireland between 29 August and 26 September, 2022.