New research has found that 82% of firms are grappling with significant skills gaps that are actively undermining productivity, innovation, and competitiveness.
Ibec's 2025 Skills Survey has found that the mismatch between available talent and the needs of a modern economy has moved from a marginal concern to a major strategic threat.
According to the study, businesses are managing intense competition for talent in a tight labour market amid escalating pressure to keep pace with emerging technologies, including AI.
Employers are expecting the competition for talent to increase in the next five years, further impacting the productivity of businesses in Ireland.
The survey found that most firms are facing significant challenges both in recruiting talent and in addressing skills gaps within their business.
According to the report, large organisations are more than twice as likely to be training for AI compared to their smaller counterparts because SMEs are forced to prioritise immediate operational and compliance training over long-term strategic upskilling.
Ibec said it is now urgent for the Government to strategically unlock the National Training Fund (NTF).
The business group is pointing to the significant surplus in the fund, estimated to reach €3 billion by 2030, which it said signals a clear underutilisation of resources.
"With talent shortages growing and internal resources stretched thin, it is deeply concerning that firms who are actively contributing 1% of their payroll to the National Training Fund are not able to access the supports they need to prepare their workforce for the future," said Meadhbh Costello, Ibec Senior Executive for Skills and Innovation Policy and report author.
"Recent years have seen a stagnation in training places available in much-needed workforce development programmes."
"Programmes such as Skillnet business networks are internationally recognised as best in class when it comes to workforce development, yet are underfunded with not enough capacity to meet industry demand," Ms Costello said.
The 2025 Skills Survey is based on the views of 281 CEOs and senior HR leaders on the skills gaps facing their company, their impact on business operations, and their strategies for addressing them.
