Hiring rates continued to slow in the first months of 2023, according to a new study.
The latest Labour Market Pulse from IDA Ireland, in partnership with Microsoft and LinkedIn, shows that the hiring rate was 27% lower in December 2022 compared to December 2021.
The slowdown was maintained through the start of 2023, with hiring rates 27.2% lower in January and 34.7% lower in February on a year-on-year basis.
"Following rapid hiring during the reopening of the economy post-pandemic, the labour market stabilised in 2022," according to the report.
"Continued economic headwinds see employees appear to choose stability over change, with longer tenures also reflected in the decreasing hiring rate," the study found.
This edition of the Labour Market Pulse focuses on the growth of Artificial Intelligence (AI) in Ireland.
It shows for demand for AI skills continues to outpace supply and found that skills availability has been deemed the most important obstacle to the adoption of AI for companies.
In 2022, LinkedIn members in Ireland working in the education sector held the highest share of AI talent, at 6.36%.
LinkedIn data shows that 1.36% of women and 2.55% of men in Ireland were considered AI talent in 2022 but the number of women considered AI talent is growing faster year-on-year than men.
Commenting on the study, Minister for Enterprise, Trade and Employment Simon Coveney said that AI skills and talent are becoming increasingly vital for Ireland's economic growth and competitiveness.
"As AI continues to revolutionise industries across the board, those with the skills and expertise to develop and deploy cutting-edge AI solutions will be in high demand," Mr Coveney said.
"Ireland has the potential to be a leader in this field, but it will require a concerted effort to cultivate and attract top AI talent to the country," he added.
IDA Ireland Interim CEO Mary Buckley welcomed the increase in female enrolment in AI related education programmes.
"Despite global uncertainty, it's encouraging to see Ireland react to the need to develop AI skills with a focus on upskilling and reskilling all the way from the workforce to a digital strategy for schools," Ms Buckley said.
Head of LinkedIn in Ireland Sharon McCooey said that despite the slowdown in hiring across the country, there are growth opportunities in areas like AI and the green economy.
"While AI talent is very much in demand, there is a clear need to develop a pipeline of skilled professionals to take up these roles," Ms McCooey said.
