The impact of artificial intelligence on jobs and the fight over remote working were among the defining employment issues in Ireland in 2025. The labour market showed signs of cooling towards the end of the year, with small rises in unemployment and a decline in advertised job vacancies. Despite this, experts expect the market to remain tight in 2026, with employers continuing to face challenges in filling key positions.
Remote working remained a contentious topic. In the summer, AIB and Bank of Ireland announced plans to increase in-office days for hybrid employees. Staff reacted angrily, with the Financial Services Union criticising the moves as “regressive” and “without justification.” The debate highlighted the value employees place on flexibility. The Government also conducted a public consultation on the right to request remote work in November, receiving over 8,000 responses, most from employees.
Deirdre Malone, Partner at EY Law Ireland, said disputes can arise from misunderstandings about the law. “The code of practice is very much focused on a right to request,” she explained. Businessman Denis O’Brien added his voice to the debate, claiming remote work had led to a “marked decline” in government efficiency.
Artificial intelligence also shaped the year’s employment trends. A Morgan McKinley Ireland report in July noted a drop in graduate hiring in finance and accountancy sectors due to automation of routine tasks. Major firms, including AIB and Microsoft, implemented AI tools aimed at streamlining work, sparking concern among unions about potential job losses. Microsoft announced global cuts of 9,000 positions in 2025, with around 250 in Ireland, while TikTok cited AI advancements when cutting 150 jobs at its Irish office. A survey by PTSB found that 47% of respondents expressed concerns over AI’s impact on job security.
Industrial action was limited but notable. School secretaries and caretakers, members of Fórsa, struck over pensions affecting 2,000 schools. SIPTU and INMO members at the Caredoc GP out-of-hours service staged a short strike over pay, and union disputes at Carroll’s Cuisine and in aviation were temporarily resolved. SIPTU’s incoming general secretary, John King, warned that cost-of-living pressures could trigger significant industrial unrest in 2026.
Pay pressures are expected to persist, with ICTU recommending private-sector increases of 4.7% to 6%, while Ibec surveys show planned employer increases averaging just over 3%. Rising costs, including pension auto-enrolment and minimum wage hikes, may limit pay growth.
From January 2026, the My Future Fund pension auto-enrolment system will require eligible employees to contribute 1.5% of their salary, matched by employers and topped up by the state. New pay transparency legislation will also come into force, requiring employers to disclose pay in job adverts and banning questions about prior salaries, aiming to reduce gender pay gaps.
The Labour Force Survey showed unemployment at 5.3% in Q3 2025, the highest since 2021. Advertised vacancies fell, while “job hugging” increased as employees stayed put. IrishJobs research found 70% of employers identified difficulty in finding skilled candidates as their main hiring challenge for 2026, suggesting the market will remain competitive despite the slight slowdown.
