Christopher Paye, Country Director of The Stepstone Group for Ireland, with responsibility for IrishJobs, has revealed his top five hiring predictions for 2026. The recruitment leader is forecasting that AI will become a more deeply embedded part of the recruitment landscape in 2026, with more employers using the technology to accelerate the hiring process.
Businesses in Ireland are expected to continue facing a highly competitive labour market in 2026, with unemployment forecast to remain below 5%. IrishJobs analysis also shows that it can take up to 10 weeks to make a successful hire in Ireland.
IrishJobs research reveals that 70% of employers say that finding candidates with the right skills is their biggest hiring challenge for 2026. With skills gaps continuing to widen in sectors from construction to IT and beyond, more employers are set to take a skills-based approach to hiring over the coming months to better meet their talent needs.
Commentary
Revealing his hiring predictions for 2025, Paye comments, “As employers across Ireland develop their recruitment strategies for 2026, The Stepstone Group is spotlighting the key opportunities and challenges ahead to guide more effective hiring.
With employers continuing to face a competitive talent market in the months ahead, securing high-calibre talent with the right skills will be one of the chief concerns for many organisations. Moving from credentials to capabilities when hiring can support employers to broaden the talent pool available and hire the top talent that can drive business growth into the future.
With more than half of recruiters struggling with time-intensive manual and administrative tasks, I expect to see more recruiters leverage AI tools and technologies in 2026. From drafting job adverts to scheduling interviews, AI is enabling recruiters to streamline administrative tasks, enhance efficiency and ultimately identify the right candidates for roles more quickly.”
Prediction 1: Skills-based hiring a top priority for employers
IrishJobs research shows that nearly 7 in 10 businesses say finding candidates with the right skills is the biggest hiring challenge they face and growing skill requirements in many industries are widening this gap.
73% of employers are set to prioritise skills-based hiring in 2026 to address this challenge, with the majority using either structured interviews or case studies to assess skills, according to IrishJobs research. By switching the focus in hiring from credentials to capabilities, employers can expand talent pools and access more diverse high calibre talent from non-traditional pathways.
Prediction 2: AI to accelerate hiring for more employers
There are signs that 2026 could be the year when we move from AI experimentation in recruitment to formal enterprise strategy and implementation. IrishJobs research shows that many recruiters are already using AI tools and automation to reduce administrative burdens and streamline the hiring process.
Nearly half of employers (47%) surveyed are using AI to draft job adverts, while 35% of employers are using AI tools to help schedule interviews with job candidates. With recruiters facing an average of 13.5 hours in manual administrative tasks per week, AI will become a key tool for more recruiters in 2026 to enhance efficiency, reduce the time spent on manual tasks, and accelerate the hiring process.
Prediction 3: Increased focus on quality of candidate applications
IrishJobs research shows that 73% of recruiters say that screening many irrelevant applications is slowing down the hiring process. 10 weeks is now the median time to successful hire for employers in Ireland. With an increasing number of candidates using AI tools to develop applications for jobs, recruiters are struggling to process a growing number of poor quality and poor fit applications.
The solution for employers will lie in adapting current hiring processes to focus on higher quality applications. Optimising job descriptions, prioritising in-person interviews, and setting project tasks all have a part to play in strengthening the quality of candidate applications in 2026.
Prediction 4: Flexibility to remain top of mind for jobseekers
With the rate of unemployment forecast to remain under 5% across 2026, employers in Ireland will continue to navigate a competitive market for talent in the months ahead. In this labour market dynamic, employers will need to remain responsive to the needs of potential talent and adapt their talent offering accordingly.
IrishJobs research shows that 71% of candidates would consider leaving their job if it didn’t support flexible working. While some employers are considering bringing their people back to the office full time, it remains a dealbreaker for many balancing responsibilities in the home or commuting long distances. Employers who combine competitive pay, transparent practices, and flexibility will be best positioned to secure talent in a competitive talent market.
Prediction 5: Salary transparency to be a key differentiator
Salary transparency is quickly becoming a competitive differentiator, moving beyond compliance to become a strategic advantage in talent acquisition. With the EU Pay Transparency Directive coming into force in June 2026, employers can harness the opportunity ahead to strengthen their employee brand and establish trust and credibility with job candidates.
IrishJobs research shows that salary remains the most important factor to candidates when considering a potential role. Salary transparency also serves as a proactive commitment to pay equity and fairness. This can help employers attract more diverse talent across broader talent pools. By taking proactive action on salary, employers can better meet their talent needs throughout 2026 and beyond.
