AI reshaping Ireland's labour market, narrowing graduate hiring

Ottoline Spearman

AI adoption is reshaping Ireland’s labour market, narrowing graduate hiring while intensifying demand for specialist talent across sectors, according to new data from Morgan McKinley.

Job vacancies fell by 11.9 per cent quarter on quarter last year, and were just 1.9 per cent lower than in Q4 2024, according to the recruitment consultancy.

Candidate engagement increased as 2025 drew to a close, with registrations rising 4.3 per cent quarter on quarter - despite a modest rise in the unemployment rate to 5.0 per cent.

Morgan McKinley said this suggested a shift towards more intentional job search behaviour rather than labour market stress. Workforce adjustments continued to take place through attrition and contract non-renewals, rather than large-scale redundancies.

Trayc Keevans, Global Foreign Direct Investment Director at Morgan McKinley, said the final quarter of the year marked a clear turning point in how organisations approach hiring.

AI is reshaping roles rather than removing them outright, but it is changing who gets hired and at what level - Tracey Keevans

“Q4 confirms that the Irish labour market has entered a more disciplined and mature phase. Employers are not pulling back, but they are being far more deliberate about where they hire. Demand has narrowed around critical skills, experienced talent and roles that directly support delivery, productivity, and growth.

Crucial to this is the impact of AI. “What is different this time is the impact of AI on how demand is shaped," she said. "We are seeing more diversified hiring at graduate and entry level, particularly where automation is replacing transactional or junior work, while demand for experienced and specialist talent remains strong.

"AI is reshaping roles rather than removing them outright, but it is changing who gets hired and at what level."

She went on to say that candidate behaviour is becoming "more intentional", with flexibility becoming a "deciding factor", not a "nice-to-have".

She said that AI capability is expected across software development, architecture, and project roles, with graduate and junior hiring remaining cautious.

"While AI tools are increasingly used to support analysis and reporting, regulatory requirements continue to necessitate human oversight, sustaining demand for experienced professionals," she said.

Active areas of the labour market with hiring activity remaining high included corporate tax specialists, newly qualified accountants, senior finance professionals, as well as life sciences, engineering and pharma.