The continuation of skills-based employment and accelerated use of artificial intelligence will define hiring in 2026, the top official said. Irish Jobs he said.
christopher payStepstone Group Country Director for Ireland, IrishJobs, has revealed his top five recruitment predictions for the year ahead.
The company predicts that by 2026, AI will be more deeply integrated into the hiring environment, with more employers leveraging this technology to accelerate the hiring process.
Irish businesses are expected to continue to face a competitive labor market in 2025, with unemployment expected to remain below 5% and analysis showing successful recruitment could take up to 10 weeks.
Seven in 10 (70%) employers say finding candidates with the right skills will be their biggest recruitment challenge in 2026.
As the skills gap continues to widen in fields from construction to IT and more, more employers will likely take a skills-based hiring approach in the coming months to better meet their talent needs.
“As employers across Ireland develop their recruitment strategies for 2026, Stepstone Group is focusing on the key opportunities and challenges ahead to guide more effective recruitment,” Mr Pay said.
“As employers continue to face a competitive talent market in the coming months, securing the best talent with the right skills will be one of the biggest concerns for many organizations.
“By moving from credentials to competency when hiring, employers can expand the available talent pool and better ensure they have the best talent to drive business growth into the future.
“More than half of recruiters struggle with time-consuming manual and administrative tasks, so we expect even more recruiters to leverage AI tools and technology in 2026.
“From creating job advertisements to scheduling interviews, AI allows recruiters to streamline administrative tasks, increase efficiency, and ultimately identify the right candidates for roles faster.”
IrishJobs' 5 job predictions for 2026
1. Skills-based hiring is a top priority for employers
Nearly seven in 10 companies say finding candidates with the right skills is the biggest recruitment challenge they face, according to IrishJobs research, and this gap is widening due to rising skills requirements in many industries.
According to IrishJobs research, 73% of employers plan to prioritize skills-based recruitment in 2026 to address this challenge, with the majority using either structured interviews or case studies to assess skills.
By shifting the focus of recruitment from qualifications to competencies, employers can expand their talent pool and access more diverse and talented talent through non-traditional channels.
2. Accelerate hiring for more employers with AI
There are indications that 2026 could be the year in which AI experiments in talent recruitment move from experimentation to formal corporate strategy and implementation.
According to research from IrishJobs, many recruiters are already using AI tools and automation to reduce administrative burden and streamline the hiring process.
Almost half (47%) of employers surveyed use AI to create job ads, and 35% of employers use AI tools to help schedule interviews with job candidates.
With recruiters facing an average of 13.5 hours of manual administrative tasks per week, AI will become a key tool for more recruiters in 2026 to increase efficiency, reduce time spent on manual tasks, and accelerate the hiring process.
3. More focus on the quality of candidate applications
According to research from IrishJobs, 73% of recruiters say reviewing too many irrelevant applications slows down the hiring process. Currently, the median time to successful employment for Irish employers is 10 weeks.
With an increasing number of candidates using AI tools to develop recruitment applications, recruiters are struggling to process an ever-increasing number of low-quality and poorly-matched applications.
The solution for employers lies in adapting their current recruitment processes to focus on higher quality applications. Optimizing job descriptions, prioritizing in-person interviews, and setting tasks for projects can all help strengthen the quality of your 2026 candidate applications.
4. Flexibility to attract job seekers' attention
With unemployment expected to remain below 5% throughout 2026, Irish employers will continue to navigate a competitive talent market in the coming months. In this labor market trend, employers need to stay responsive to potential talent needs and adapt their talent offerings accordingly.
IrishJobs research shows that 71% of candidates would consider leaving their job if flexible working was not supported. Some employers are considering bringing employees back to the office full-time, but balancing many family responsibilities and long commutes remains a major challenge.
Employers with competitive pay, transparent practices, and flexibility are best positioned to retain talent in a competitive talent market.
5. Pay transparency is a key differentiator
Pay transparency is rapidly becoming a competitive differentiator, moving beyond compliance to a strategic advantage in talent acquisition.
With the EU's Pay Transparency Directive coming into force in June 2026, employers can take advantage of upcoming opportunities to strengthen their employee brand and establish trust with job seekers.
IrishJobs research shows that salary remains the most important factor for candidates when considering potential roles. Pay transparency also serves as a proactive approach to pay equity and equity.
This allows employers to attract more diverse talent from a wider talent pool. By taking proactive steps around pay, employers can better meet talent needs in 2026 and beyond.
(Photo: Getty Images)
