Foreword

As part of our service to clients and candidates, Link Personnel Services is happy to publish our annual salary surveys for 2025. We publish our surveys around this time of year to measure the impact that January, traditionally a very busy month for hiring, has on pay across Ireland.

January 2025 has not moved the dial very much. In contrast, looking back on surveys since 2021, we have seen really significant growth in wages, across all sectors. Of course, there are many reasons for this growth, and it is by no means uniform across sectors. However, the inflation of 2022, 2023
and the first half of 2024, the associated, elevated cost of living, and a tight labour market over that time have been the main drivers of higher pay. Looking back on the last number of years, Link Personnel has accurately predicted wage growth in the economy. While final numbers for 2024 have
not been released we expect the percentage growth to fall just outside the upper end of our estimate of 2.5-4.5% growth.

What about 2025? We should see strong growth in Q1, driven by a 6.3% rise in the minimum wage, but for the full year, a more subdued (but not non-existent) inflation picture and a labour market now well and truly beyond the hyper growth years of 2022 and 2023, should result in growth between 2.5-4.5%, once again.

What are the other stories that will affect the labour market in Ireland in 2025? U.S. Tariffs on EU goods are a clear and present threat of disruption, AI, increased automation, and digital transformation will play a larger role this year than in 2024, as already evidenced by the introduction of Chinese large language model alternatives. Like 2024, hybrid work policies, continue to be up for discussion, with recent moves by private and public sector bodies firing shots across the bow to encourage (or order!) employees back into the office.

This remains a risky move based on published survey data and our specialist knowledge of candidate sentiment. Salary is a necessary, but not sufficient tool to attract candidates, while benefits – including hybrid or remote work – remain a powerful tool of attraction for employers when it comes to finding the right people. Who gains the upper hand in the tussle over hybrid work, may depend on the course of the economy in 2025.

As with last year, the only certainty is that the economy and the labour market will be uncertain in 2025. The Irish economy has remained remarkably resilient on paper, but people don’t feel better off. That is a problem. Huge infrastructure bottlenecks remain which represent a massive danger to growth and quality of life. From this vantage point, Link Personnel sees moderating job growth this year, but we don’t expect anything cataclysmic to disrupt a relatively stable trajectory of job growth
witnessed in recent years.

Link Personnel intends to increase its staffing levels this year to take advantage of new opportunities. We have accelerated our adoption of new programmes and processes we believe will help match clients and candidates, in a cost effective and efficient way, throughout 2025. We stand
ready to provide our help, expertise and analysis to candidates and clients alike and we look forward to working with you throughout the rest of this year and beyond.

Please feel free to contact me to discuss the market in general or your industry specifically.

Cormac Spencer
Director
Link Personnel Services
Direct: +353 1 845 4651
cormac@linkpersonnel.ie