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Healthcare sector facing skills shortages and rising wage pressures

The report by Excel found that many healthcare professionals are prioritising work-life balance, choosing lower-stress roles (Stock image)
The report by Excel found that many healthcare professionals are prioritising work-life balance, choosing lower-stress roles (Stock image)

The healthcare sector is facing urgent pressures when it comes to staffing, wages, long-term care capacity and a growing public-private pay gap, according to a new report.

Excel Recruitment's Healthcare Salary Guide for 2025 found that the sector is having to deal with soaring demands from an aging population.

According to Excel, minimum wage increases set for January 2025 could lead to a 10% increase in wages across the board, while minimum salary thresholds for non-EU nurses who require a critical skills visa will raise to €44,000 and healthcare assistants to €34,000.

The report found that both public and private healthcare providers are under mounting pressure to remain competitive while addressing critical staffing and care demands.

It also found that rising operational costs and recent salary hikes in the HSE have widened the pay gap, with private sector pay trailing nearly 20% behind.

"To retain staff, some private employers are now offering HSE-matched pay, increased leave, and enhanced benefits, including statutory sick pay and pension options," according to the Excel salary guide.

The report found that many healthcare professionals are prioritising work-life balance, choosing lower-stress roles in nursing homes and step-down facilities over traditional hospital settings.

It also highlights that the sector is increasingly reliant on international recruitment to address staffing shortages, but attrition remains high among non-EU employees, with over 50% leaving within 18 months.

"With over 15% of Ireland's population projected to be aged 65 or older by 2026 and a doubling of the over-85 demographic expected within the next two decades, Ireland’s healthcare system faces unprecedented strain," said Claire Timmon, Head of Healthcare at Excel Recruitment.

"The healthcare workforce, comprising approximately 80,000 nurses and 25,000 doctors, is under pressure.

"Only 50-70% of registered practitioners are actively working, and with Ireland’s population aging rapidly, demand for healthcare and long-term care services is set to rise exponentially," Ms Timmon added.