AI results in notable reduction in graduate hiring by Irish firms

Recruitment firm Morgan McKinley’s latest quarterly employment monitor shows there were just over 53,300 professional job vacancies recorded during the second quarter of this year — compared to just over 48,600 in the first quarter

Trayc Keevans, global FDI director with recruitment consultancy Morgan McKinley Ireland, said the professional employment market had shown 'steady resilience' during the second quarter.

Professional job vacancies increased by 10% between April and June, compared to the start of the year, as the labour market shows “steady resilience” in the face of global economic uncertainty, according to recruitment firm Morgan McKinley.

The company’s latest quarterly employment monitor shows there were just over 53,300 professional job vacancies recorded during the second quarter of this year — compared to just over 48,600 in the first quarter.

However, this is still a decline of 1.8% compared to last year, with the company suggesting the market remains cautious.

In terms of those seeking jobs, there was a 6% decrease during the second quarter compared to the first, but a modest 1.5% increase year-on-year.

Global director at Morgan McKinley Ireland Trayc Keevans said the professional employment market had shown “steady resilience” during the second quarter “despite external economic uncertainties and shifting global trade dynamics”.

The standout development this quarter is the significant impact of AI and automation, particularly within the accountancy and finance sectors. 

"The notable reduction in graduate hiring by major firms, driven by AI capabilities, highlights potential challenges ahead,” she said.

“Additionally, ongoing debates around hybrid and return-to-office working models continue to shape recruitment strategies, as employers seek the right balance between flexibility and in-person collaboration.” 

Given the demand for housing as well as the increase in infrastructure spending, the construction sector finds itself under “significant pressure”, according to the firm, owing to a shortage of skilled professionals, especially quantity surveyors and project planners.

The data shows commercial and pharmaceutical construction sectors have experienced a modest slowdown, yet residential and national infrastructure projects, including transport upgrades, renewable energy initiatives, and data centre developments, remain robust.

“However, ongoing talent deficits and material procurement difficulties threaten to constrain future growth." 

The company said the tech sector in Ireland continued to see “strong yet uneven” hiring activity, with recruitment for cybersecurity specialists and data engineering remaining robust.

However, contract hiring among larger multinational companies has slowed during the most recent quarter “influenced by tighter cost controls, prompting a shift towards permanent positions or offshore staffing solutions”.

In the financial services sector, hirings have been consistent across funds, insurance, and banking sectors. Relationship management positions remain highly sought after due to a focus on client retention.

Ms Keevans said firms operating in the accounting and finance sector were experiencing “a significant shift towards data analytics and AI-driven roles”.

Business support roles have shown increased hiring while the legal sector has seen a moderate rate of growth.