There has been a fall in the proportion of companies planning to increase their headcount next year, according to a new survey from business group Ibec.
The research shows that 37% of companies plan to increase headcount in 2026, down from 41% in 2025 and 45% in 2024.
A total of 56% of respondents plan to leave headcount unchanged next year, while 7% said they plan to decrease headcount.
While most new hires will continue to be for permanent roles, the share is expected to fall from 95% in 2025 to a forecasted 89% in 2026.
According to Ibec’s Pay and Resourcing Forecast Report, the main drivers of additional headcount are increased production and demand, business expansion, and building a future pipeline of talent.
The survey of over 400 senior HR professionals found that 80% of businesses expect to increase pay in 2026, with an average increase of 3.1%.
A total of 85% of businesses increased pay in 2025, with respondents reporting an average increase of 3.6% across all sectors.
The sectors that recorded the largest pay increases for this year, averaging 5.2%, were hotels, tourism and leisure.
Ibec said this reflected changes in the minimum wage and ongoing demand for labour within these sectors.
No respondents indicated any expectation of wage decreases in 2026.
“We are seeing a slight slowdown in headcount growth, however, the overall number of companies maintaining their workforce remains strong,” said Maeve McElwee, Ibec’s Executive Director of Employer Relations.
“Whilst employment trends remain positive, employers are increasingly prioritising investment in the labour market to prepare workers with the skills needed for a rapidly evolving employment landscape,” Ms McElwee said.
“Looking ahead, one of the major challenges for employers will be compliance with the new EU pay transparency rules, which must be transposed into Irish law by June 2026.”
“The lack of detailed guidance is a serious concern for businesses, and Ibec has been urging Government to publish clear employer guidance well ahead of the deadline to support preparation, ensure compliance, and avoid adding unnecessary regulatory or cost burdens beyond EU requirements,” she added.
Article Source – Slowdown in headcount growth plans by Irish businesses – Ibec
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