Four in 10 businesses lost staff in past six months while recruitment 'challenging'

Excel founder and CEO Barry Whelan. Mr Whelan said businesses are currently 'fishing in a very small talent pool'. 

Four in 10 Irish businesses have lost staff in the past six months, while recruitment remains a challenge, the results of a new salary guide released on Tuesday shows.

The research found ongoing shortages reported in sectors including hospitality, healthcare, retail, industrial and warehousing. More than one-third of employers (36%) are now relying on temporary or short-term staffing solutions to fill critical gaps. Some 67% of businesses had problems recruiting staff in 2025, while 41% said they had lost staff over the past six months.

“Unemployment is still hovering around 4.5%, which is positive for the economy, but it also means employers are fishing in a very small talent pool. Businesses are dealing with higher wages, increased turnover and fierce competition for experienced people, particularly in frontline and essential roles," said Excel Recruitment Group founder Barry Whelan.

The Excel Recruitment Salary Guide for 2026 also shows that jobseekers remain expectant on hybrid work options, with 81% of candidates indicating they want a mix of office-based and remote work.

“For a portion of the workforce, hybrid work is no longer a ‘nice to have’. It is now a baseline expectation, driven not just by lifestyle preferences but by housing availability and commuting realities. However, more and more employers are pushing a back-to-office agenda," said Mr Whelan.

Employers will face added pressures in 2025, with minimum wage increasing to €14.15 per hour from January 1. The auto enrolment pension scheme will commence in January, with 1.5% contributions from employers and employees, and a 0.5% contribution from the State. 

“These measures are important for long-term financial security and worker protection but they are landing at a time when many businesses are already operating on tight margins and managing ongoing inflationary pressures," said Mr Whelan. "The cumulative impact is significant, particularly for labour-intensive sectors.”