New research has found that 81 per cent of employers in Ireland are struggling to find skilled talent.
According to the ’employment outlook survey’ by recruitment firm ManpowerGroup, this is the highest such figure in the 17 years it has been conducting this research.
The automotive, transport and logistics sector had the highest response rate at 90 per cent, followed by energy & utilities at 88 per cent, and health care & life sciences at 86 per cent.
ManpowerGroup said it is seeing businesses offering increased salaries across all levels to “attract skilled talent in a talent scarce market”.
Its data shows an increase of 16 per cent for the €20k plus salary range, 20 per cent increase for the €40k plus range and an increase of 24 per cent for jobs paying over €100k.
John Galvin, managing director of ManpowerGroup said this is “substantially higher” than the 7.8 per cent inflation rate.
“Businesses in Ireland are experiencing the worst talent shortage on record,” he said. “This is set against a backdrop of decreasing job applications, increased job-hopping, and increasingly higher salary expectations from candidates.”
Galvin added: “We know that salaries are increasing in most sectors, and larger employers have the greatest ability to absorb salary increases.
“Employers may also be reducing headcount in non-essential roles in order to pay for the salaries needed to meet the expectations of highly skilled talent.
“This is more challenging for smaller businesses who have less headroom to downsize while remaining operational. Despite this, businesses of all sizes remain optimistic going into the second quarter.”
ManpowerGroup is expecting a drop in hiring for micro-businesses in Ireland for the second quarter, with 22 per cent of businesses with 10 employees or fewer intending to take on staff.
Large businesses with over 250 employees have increased their employment plans, however, with 30 per cent intending to hire.