Recruiters in Northern Ireland continue to face hiring challenges even with a resilient local job market, according to new research from leading hiring platform NIJobs.
The data, which shines a light on the skills gaps in the NI labour market, reveals that 72% are unable to match candidates with the right skills. A further 53% believe that the widening gaps and increase in skills requirements are presenting challenges in attracting and hiring the right candidates for roles.
The new ‘NIJobs Hiring Trends Update,’ which will be released twice a year, explores key labour market shifts and what it means for employers and recruiters, helping to make the recruitment process more effective. It provides an important insight into the recruitment landscape during a period of global uncertainty.
Richard Ramsey, Professor of Practice in Economics & Policy at Queens Business School who analysed the Hiring Trends data on behalf of NIJobs puts the local job market into context amidst hiring challenges: “Last year was one of outperformance as far as the Northern Ireland economy was concerned, as private sector growth and labour market conditions compared favourably with the rest of the UK. This theme has continued with the local economy maintaining this momentum well into 2025. Northern Ireland was the only UK region to record growth over the last 12 months and continues to have the lowest unemployment rate of the 12 UK regions at 2.6%.”
Businesses in NI are currently spending six weeks or longer finding the talent they need. With skills gaps remaining prevalent, this has a knock-on effect in finding the right candidate, with 57% stating they are under time pressure to hire in an already tight labour market.
Alongside obstacles sourcing skilled workers, employers are also facing staff retention issues- more than half of employers (55.3%) admit they have been challenged by candidates receiving counter offers from their current employers.
Candidates now have increased expectations around flexible working and salary, but as operational costs continue to rise, employers may not be able to meet all these demands.
Richard Ramsey continues: “Within a tight labour market employees rather than employers hold the upper hand. Replacing staff can be expensive. Therefore, when a valued staff member seeks to leave, an employer may provide a counteroffer.
“Flexible & hybrid working have subsequently become baked into employees‘ expectations. But increasingly these expectations jar with employers. 60% of employers found it a challenge to meet employees’ flexible working expectations over the past six months.
“House prices and private sector rents have increased by 39% and 50%, respectively. Add in rising food, fuel and childcare costs, it is unsurprising that salary is front of workers’ minds. Some 56% of jobseekers view salary as the decisive factor when deciding on a new role / employer. As with flexible working, the majority of employers (56%) have found meeting candidates’ salary expectations a challenge.”
As the cost of living and running a business continues to rise, skills gaps, employee benefits and attracting and retaining talent must be factored into the wider recruitment strategy. The advice from NIJobs is to focus on skills-based hiring to enhance talent pools and be clear from the outset on flexibility and salary offerings to keep employees happy and productive in the workplace.
Richard Ramsey adds: “Given the ongoing difficulties in attracting and recruiting the right skills and candidate, retaining talent is vital. Whilst salary and flexible working are the two most decisive factors for employees, they may be insufficient to attract or retain staff.
“The Hiring Trends Update notes that Northern Ireland lags behind both Ireland and the UK in terms of employer satisfaction. Only 68% of NI employees are satisfied with their current employer which compares with 89% and 91% for UK and Ireland, respectively.
“A key area impinging on employer and job satisfaction for an employee is the opportunities in current job to apply skills and competencies. Only two-thirds of NI workers are satisfied with this criterion which compares with 86% and 88% for the UK and Ireland respectively. The majority (57%) of dissatisfied employees cite there are no opportunities for professional development or further training. This is well above the corresponding rates for Ireland (30%) and the UK (36%).
“The survey provides valuable insight for local employers that employees value and expect professional development and further training opportunities. Those that fail to offer these will struggle to attract or retain talent.”