Lack of affordable accommodation still hindering staff recruitment

Alison Hodgson, CIPD country director Ireland; Meg Dunphy, CIPD HR policy and engagement manager; and Linda Waters, CIPD senior employer solutions manager. Picture: Chris Bellew/Fennell Photography

A majority of employers say the housing crisis continues to adversely affect recruitment and is driving demand for hybrid and remote work, new research shows.

The Chartered Institute of Personnel and Development (CIPD)/Industrial Relations News Pay and Employment Practices Survey 2026 looked at pay and employment trends in the private sector and commercial semi-state organisations. Some 61% of employers report the housing crisis is impacting recruitment and is driving demand for hybrid and remote work among 73% of employers.

"The housing crisis is continuing to shape the labour market in a very real way. Employers are telling us that difficulties securing affordable accommodation are making it harder to attract and retain staff," said CIPD country director Alison Hodgson. "As a result, flexible and hybrid working are becoming even more important tools for employers trying to access and keep talent.”

The survey also found that more than half of Irish employers plan to increase pay this year, with the average increase expected to be 2.9%. Overall, the survey shows a more cautious approach to pay increases. Some 78% of employers said they increased salaries in 2025, but just 59% are planning a pay rise this year. The average increase is projected to be 2.9%, down from 3.3% in 2025 and 4.2% in 2024. 

“A clear downward trend in pay growth is emerging in the private and semi-state sector. While many employers still plan to raise pay, the pace of increases is slowing as organisations take a more cautious approach in the face of ongoing economic uncertainty," said Ms Hodgson. 

Some 44% said they intend to increase employee numbers this year, while 14% are planning to decrease their staff count.

AI integration is a priority for 73% of employers with addressing skills shortages is an urgent focus area for 67% of those surveyed. “Employers are clearly preparing for a workplace that is changing rapidly. The strong focus on AI adoption also underlines the growing importance of investing in people’s skills," said CIPD’s HR policy and engagement manager Meg Dunphy.

"Addressing skills shortages and supporting employees to adapt to new technologies is critical if organisations are to realise the full benefits of AI."