Nearly Half of Irish Employers Cut Entry-Level Roles Amid AI Rise and Rising Costs

RTÉ News reports on a significant shift in Ireland's labor market, where almost half of employers are cutting back on entry-level and graduate positions. This trend is driven by a combination of rising labor costs and the accelerating adoption of Artificial Intelligence, forcing companies to re-evaluate their hiring strategies and focus more on specialized, experienced talent.

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Almost half of employers have reduced the number of entry and graduate level roles available in their organisations amid rising labour costs and increased AI adoption.

The research from IrishJobs highlights that the skills landscape is changing rapidly, with two-thirds of employers recognizing the need for evolving industry competencies. This demand is particularly acute for technical roles, including AI, machine learning, and cybersecurity. Despite recent high-profile tech sector layoffs, the IT and telecoms sector has seen increased hiring, indicating a continued demand for specialized skills within the industry.

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It's clear from the findings that despite ongoing economic uncertainty, Ireland’s labour market remains fundamentally resilient.

Christopher Paye, Country Director of The Stepstone Group Ireland, emphasizes the fundamental resilience of Ireland's labor market despite economic uncertainties. He notes that employers are actively planning for growth, especially in sectors like manufacturing and construction, where the supply of skilled labor struggles to meet demand. The rebalancing of hiring mixes towards experienced talent with in-demand skills is a direct consequence of rising costs and advancements in AI, reshaping workforce planning across the board.

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Employers are planning for growth, particularly in sectors such as manufacturing and construction, where demand for skilled talent continues to outpace supply.

From an Irish perspective, this report signifies a critical juncture for the nation's workforce. While the resilience of the labor market is a positive indicator, the reduction in entry-level roles presents a challenge for new graduates and those seeking to enter the workforce. The emphasis on specialized and technical skills underscores the need for continuous education and adaptation within the Irish workforce to remain competitive in an AI-driven economy. The findings from over 500 HR leaders and 1,000 jobseekers provide a comprehensive snapshot of the evolving employment landscape in Ireland.

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Rising labour costs and advances in AI are also reshaping workforce planning, prompting many employers to rebalance their hiring mix and focus on experienced talent with in-demand skills.