Two thirds of businesses found it difficult to source staff throughout this year, underlining ongoing shortages in sectors including hospitality, healthcare, retail, industrial and warehousing, a new report shows.
The Excel Recruitment Salary Guide for 2026 is a nationwide survey of employers and employees that provides insights into pay trends, skills shortages and workforce expectations across multiple sectors, including hospitality, healthcare and retail.
It highlights a labour market under “sustained pressure” as Ireland moves into 2026, and points to rising employment costs, persistent skills shortages, and changing worker expectations as reshaping recruitment across key sectors.
To keep operations running, more than one-third of employers are now relying on temporary or short-term staffing solutions to fill critical gaps.
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Almost 70 per cent of employers are concerned about increasing employment costs, while 41 per cent report losing staff in the past six months.
Excel Recruitment Group chief executive Barry Whelan said the findings “reflect a labour market that remains resilient but increasingly stretched”.
“Unemployment is still hovering around 4.5 per cent, which is positive for the economy, but it also means employers are fishing in a very small talent pool,” he said.
“Businesses are dealing with higher wages, increased turnover and fierce competition for experienced people, particularly in frontline and essential roles.”
Almost one in five professionals said they plan to actively seek a new role in the coming months, while expectations around flexibility and location continue to evolve.
Hybrid working remains a dominant preference, as 81 per cent of candidates indicated they want a mix of office-based and remote work.
Housing pressures are also playing a significant role in career decisions, as more than a quarter of respondents said the lack of available housing will directly affect their employment plans.
“For a portion of the workforce, hybrid work is no longer a ‘nice to have’,” said Mr Whelan. “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, and remember, hybrid is not a reality for all frontline staff.”
Despite the challenges, the report said employers who take a “strategic approach to workforce planning” will be best positioned in the year ahead.
“Understanding what employees value is now critical to retention,” said Mr Whelan.
“Organisations that invest in workforce planning, flexible work models and clear career pathways will have a real advantage.
“The employers who adapt fastest to these realities will reduce turnover and secure the talent they need to grow.”
