Skills shortages driving Irish wages

Only a few years after the economic crisis, skills shortages are already driving up wages and harming Ireland’s economic recovery, an international recruitment firm has warned.

“Employers in Ireland are facing a serious problem in matching available candidates with unfilled jobs,” said Hays Recruitment.

Employees are chasing up wages and creating wage inflation in high-skilled jobs.

“The Irish economy emerged as the third fastest growing economy of the 31 countries surveyed, however urgent skills shortages may put this economic recovery at risk, with industries including IT, engineering, and construction struggling to identify a sufficient supply of skilled workers to keep pace with demand in these growing industries.”

Hays said Ireland’s economic growth is “impressive”, with only China and India likely to post faster growth this year.

Its report claims 11m more people, one in every 20 people currently employed across the world, would have a job if participation rates had remained at pre-crisis levels.

“Particular stress is evident as these sectors and professions [construction and property, IT, and engineering] which experienced both an exodus of established skills during the recession and a dearth of new talent coming through the education system,” said Hays Ireland managing director Richard Eardley.

“Overall participation rates remain well below pre-crisis levels and it is therefore critically important that the long term unemployed are reintegrated into the labour market as many are at risk of skills erosion.”