Employers in Ireland are implementing "quiet redundancies", according to a new report.
The latest Morgan McKinley Quarterly Employment Monitor has found an emerging trend of stealth job cuts involving the non-renewal of contracts, scaled-back team structures and discreet workforce adjustments that are not immediately visible in headline figures.
The report notes that while it is too early to pinpoint the exact drivers of this, the combination of global economic uncertainty, AI-led transformation and anticipation around US tariffs suggests companies are shifting from reactive hiring to more cautious, long-term workforce planning.
According to the research there was a cautiously optimistic start to the year, with professional job opportunities in the first quarter of 2025 increasing by 2% year-on-year and by 7% quarter-on-quarter.
Professional job seekers rose by 16% compared to the previous year, but decreased by 4% from the final quarter of 2024, indicating a potential stabilisation in candidate movement.
The report found there is a continuing trend of post-pandemic labour market strength but with new US tariffs in force, and signs of stealth job cuts emerging across multiple industries, that resilience could soon be tested.
According to the employment monitor, artificial intelligence is increasingly influencing how candidates apply for roles, with many now using it to enhance or generate CVs.
"However, employers have raised concerns that these AI-generated applications do not always accurately reflect the individuals encountered at interview," said Trayc Keevans, Global FDI Director at Morgan McKinley.
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"Reports of mismatches between CV content and candidate performance are becoming more common, placing greater pressure on screening processes and the assessment of authenticity," Ms Keevans said.
The report notes that while some multinationals have quietly pulled back on formal Diversity Equality and Inclusion (DEI) budgets or job titles, Irish employers remain focused on inclusion under new banners - emphasising employee engagement, community, and fairness rather than explicitly labelled DEI roles.
"The result is a subtle but important shift in how inclusion is operationalised in the workplace," the report found.
Morgan McKinley said its data shows clear evidence of renewed hiring confidence across many sectors, particularly in technology, financial services, and construction.
"That said, employers are navigating a complex matrix of influences - from economic headwinds and evolving global regulation to the accelerating role of AI and shifting expectations around workplace culture," the report found.
The data is based on Morgan McKinley's monthly records of new permanent and contract job vacancies and new candidates registering with the firm for employment.
