AI and low unemployment to dominate recruitment space

As we begin to navigate the 2025 jobs market, what do the experts think we should expect?

With historically low levels of unemployment in Ireland currently projected to continue well into 2025, Sam Dooley, the country director of The Stepstone Group for Ireland, is of the opinion that organisations in the region will have to expertly navigate a tight labour market that will present many challenges when it comes to the attraction and retention of high-calibre talent. 

As it stands, according to the Central Statistics Office, approximately 2,785,000 people are employed in Ireland, reflecting the strength of the current landscape. So, as we embark upon a new year, what trends are likely to shape and mould the next 12 months of job recruitment?

Full steam ahead for AI

Unsurprisingly the conversation has turned once again to AI and it really does seem that no job, career or industry is going to be immune to its influence. Dooley predicts that the use of AI among recruiters is only going to increase amongst professionals whose job it is to hire new employees. 

“As the AI transformation accelerates, more recruiters are set to use the technology as part of their everyday role,” explained Dooley. 

“The technology can help to reduce the high workload for recruiters by reducing the time spent on manual and repetitive tasks. Sending candidates reminders, tracking application status and scheduling job interviews are some of the most common ways in which the technology is already being used to enhance productivity during hiring.”

As the continued use of AI becomes more popular throughout 2025, he noted companies will have to adopt clear guidelines on how the technology can be used and be provided to employees of all abilities to develop and improve their skills. A step he stated that almost a quarter (24pc) of companies have yet to take, in that they have no established organisation-wide AI policy. 

Get on board with hybrid

I doubt any of us can envision a world in which hybrid, flexible and remote working are no longer viable options and certainly, for Dooley, despite the many high-profile return-to-office mandates from companies such as Amazon and Apple, hybrid working is undoubtedly here to stay. 

He explained the stabilisation of figures around hybrid working vacancies across the last six quarters suggests that this particular working model is going to remain a key element of Ireland’s labour market over the course of the next 12 months. Additionally, he warns that, if employers want to attract and retain talented candidates and employees, they will have to consider alternatives to 100pc in-person working. 

“With a tight labour market set to continue in 2025, employers will need to consider how best to formalise hybrid working arrangements in their offering in order to meet candidate demand for flexible working. IrishJobs research shows that nearly half of jobseekers (47pc) would be willing to turn down opportunities that do not provide hybrid or fully remote working options.

“In contrast, the future of fully remote homeworking in Ireland remains to be determined, with the number of remote job vacancies falling to its lowest level in four years in October.”

Growing together

As the years go by, more and more attention is being given to the conversation around employee mental health, wellbeing and how this translates to talent retention. The low unemployment rate has resulted in a system whereby employers have to present their organisations as superior, in a highly competitive market. 

For Dooley, throughout 2025, employers will have to focus on employee engagement, culture and retention if they are to have an impact. “In this environment, it’s crucial that employers continue to evolve their talent offerings to meet the evolving needs of professionals. A positive culture that promotes a healthy work-life balance is a crucial part of reducing attrition and keeping talent long-term.”

International attractiveness

Ireland has long been recognised as a leading European hub for international talent. However, amid increasing geopolitical competition and changing attitudes towards US multinationals based in Ireland, Dooley noted that the Irish Government and industries will have to work together to ensure the country remains an attractive destination for international talent. 

“Research from the Stepstone Group earlier this year revealed that Ireland fell four places to rank 36 in the most attractive countries for professionals to relocate. Addressing the infrastructure challenges that the economy faces, particularly in housing supply, will be important to ensure that the country continues to attract highly skilled talent that can support growth across the economy.”

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