Irish jobs market shows little sign of slowing down as it faces down global challenges

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Cliff Taylor: Interest rates and prices rising have yet to halt the employment gallop as employers still experiencing labour shortages

The employment rate – the percentage of people in the population between 15 to 64 who are in work – rose to a record high of almost three in four.

Even in tech, however, total job numbers remain steady, down just slightly on the start of the year. Photograph: Gareth Chaney/Collins Further reflecting a tight market, the job vacancy rate was just 1.3 per cent in the second quarter of this year. Employers are snapping up talent when they can get it.And in many cases this is talent from abroad, with more than 18,000 work permits issued in the first seven months of this year, well ahead of the pre pandemic levels, with 14,000 granted in the whole of 2019.

This covers many areas of the market. Following a report earlier this week that big four accountancy companies were finding that many staff left after they completed their training, Connaughton said that across professional services and more widely – for example in many areas of healthcare – holding on to younger staff who have just qualified remained an issue.

A significant number, particularly in the private sector, say it is variable model, suggesting that employees are expected to attend for specific reasons, rather than on a set number of says. In a related finding, as well as better career progression and cost of living issues, burnout and work-life balance issues are reported as important reason for job moves.

The jobs market will be the key leading indicator in the months ahead about the strength of the Irish economy. At some stage, the shortages may lead to a slowdown in investment and expansion – as companies either cannot find staff or face costs which are too high. This would be the normal economic cycle when growth would then slow along with labour demand.

 

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