Jobseeker activity also rose sharply, up more than one-third compared to last year’s quarter.
Despite tough hiring conditions, professional job openings across Ireland have increased by 16.2pc in the first quarter of 2026, compared with the final quarter of 2025, finds the latest Morgan McKinley Irish Employment Monitor.
Reflecting a market in which stronger movement, higher competition and increased scrutiny around hiring decisions dominated the conversation, the report also found that job seeker activity rose sharply, increasing by 36pc quarter-on-quarter and 19pc year-on-year.
Despite the positive figures however, Morgan McKinley’s report suggested that rather than expanding, the market remains “measured” as employers hire across the professional landscape with greater caution. This is evident in “longer hiring processes, tighter control over permanent headcount and a stronger emphasis on sector specific experience, immediate capability and long-term fit”.
The report also noted that salary movement has become more restrained across multiple disciplines, while in-office attendance expectations have become stricter, particularly in Dublin and more regulated environments.
Commenting on the findings of the report, Trayc Keevans, the global foreign direct investment director at Morgan McKinley, said: “The first quarter showed a clear increase in activity, but it was not a straightforward return to confidence.
“Employers continued to hire, but conditions remained measured, decision making took longer, and in many sectors the market became more selective and more employer led. The strongest demand was concentrated around roles tied to regulation, risk, transformation, automation and delivery, rather than broad based expansion.”
Tough times
Keevans explained, one of the defining features of Q1 is in how rising activity has failed to result in a market with looser conditions, noting the “opposite was often true”. She said, across sectors many employers were found to be subjecting permanent appointments to much greater scrutiny, as well as the interview process and in-office requirements.
“At the same time, candidate movement picked up, but moving jobs is no longer producing the kind of uplift many professionals would have expected in previous years. In several parts of the market, the balance has shifted back towards employers,” she said.
Unsurprisingly, geopolitical instability was found to be negatively influencing behaviour, albeit not in “a uniform way”. In some sectors global uncertainty is reinforcing caution around permanent headcount and increasing reliance on contract hiring. In other sectors, Morgan McKinley’s report indicated that there is heightening concern around supply chains, energy, cost control and broader planning.
Keevans said, “It is not stopping recruitment, but it is clearly shaping how organisations think about resourcing, timing, and commitment.”
Industry wins and woes
In the life science and engineering spaces activity was shown to have increased, with permanent hiring becoming slower, tougher and more selective and driven by investment in Industry 4.0, the report found an increased demand for automation expertise. There was a similar rise in the need for process engineering talent.
Keevans said, “But employers are taking longer to make permanent decisions, interview processes have become more rigorous and salary expectation gaps are becoming more visible. Contract hiring remains structurally important and rates have risen for niche project skills, particularly in automation, commissioning and qualification and validation.
She added, “Returning Irish professionals, particularly from Australia, are also helping to strengthen the talent pool. AI is continuing to affect hiring processes too, especially through additional testing and sustained concern around AI generated CVs.”
In the technology ecosystem, while hiring did continue into Q1, Morgan McKinley’s research showed that the market has narrowed significantly, becoming more demanding. Particularly in areas such as “core technical and AI aligned capabilities, with employers prioritising software engineering, data, ETL, project delivery, governance and risk and professionals who can work confidently with AI enabled tools.
She said, “AI capability is no longer a niche advantage in this market and is increasingly becoming a baseline expectation across multiple role types. At the same time, Dublin has become more contract weighted, competition at senior level has intensified, counter offers remain common and the reduced availability of hybrid and remote roles is making the market tougher for experienced candidates.”
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