A new report by recruiting experts, Hays has found that while Ireland’s overall economic outlook is positive, a growing skills gap remains a critical issue for many industries like tech and construction.
The annual Hays Global Skills Index analyses professional employment markets in 33 major global economies.
This year, Ireland's overall score has increased from 5.7 in 2015 to 6.3 in 2016. The score is calculated by weighting seven metrics, including education flexibility, labour market participation and wage pressure.
A score of 5.0 suggests firms are able to recruit, retain or replace their key talent at generally prevailing wage rates. A score close to 0 indicates intense competition for key vacancies while a score close to 10 indicates severe difficulty in finding the right skills to fill key vacancies.
Irish economic growth is continuing steadily, while the unemployment rate sits at 7.8%, down from 9.4% last year; long-term unemployment is at 3.9% compared to 5.6% in 2015.
Businesses are generally confident in the Irish economy, despite national political concerns caused by an unstable Dáil and external factors like Brexit. Decision-makers are investing in growing their teams and expanding operations.
The survey shows that talent mismatch remains a significant issue. Skills shortages are especially prevalent in IT, construction and life sciences. Businesses are struggling to find the right people for key positions, particularly in highly skilled fields. As a result, many must look abroad to fill these gaps.
Managing Director of Hays Ireland, Richard Eardley says, "Overall, the Irish jobs market is buoyant and the trend of recovery is continuing. Backed by investment from both foreign multinationals and indigenous firms, falling unemployment, relatively stable political conditions and a Government friendly to business, the economic outlook for 2016 and 2017 is positive."
He added, "However, our ongoing skills shortage is a problem and many international and highly skilled industries, like IT and construction, are bearing the brunt of this."
Source: www.businessworld.ie
