Impact of AI being felt in jobs market, says Morgan McKinley report
Professional job openings across Ireland increased by 10% in the second quarter of 2025 compared to the previous quarter, according to the latest Morgan McKinley Irish Employment Monitor. However, the market remains cautious, with a slight year-on-year decline of 1.8%. Job seeker activity decreased by 6% from the first quarter but showed a modest year-on-year rise of 1.5%, indicating a resilient yet cautious employment environment.
Trayc Keevans, global director at Morgan McKinley Ireland, said: “The notable reduction in graduate hiring by major firms, driven by AI capabilities, highlights potential challenges ahead. Additionally, ongoing debates around hybrid and return-to-office working models continue to shape recruitment strategies, as employers seek the right balance between flexibility and in-person collaboration.
“Ireland’s technology sector, particularly in Dublin, continues to see strong yet uneven hiring activity. Recruitment remains robust for cybersecurity specialists, driven by heightened regulatory requirements such as NIS2 and DORA, and businesses continue to invest strategically in cloud technologies and targeted digital transformations. Permanent roles, especially in data engineering, are notably active as companies build their infrastructure for broader AI integration.”
Keevans added: “However, contract hiring among larger multinational firms has slowed this quarter, influenced by tighter cost controls prompting a shift towards permanent positions or offshore staffing solutions. Despite this moderation, certain specialist areas, particularly software engineering and DevOps within fintech and financial services, continue to rely heavily on contract hires to maintain flexible and agile project delivery.
“Financial services have maintained consistent hiring across funds, insurance, and banking sectors. Employers are particularly focused on roles requiring compliance expertise, including anti-money laundering and Know Your Customer (KYC). Relationship management positions also remain highly sought after due to the ongoing focus on client retention and service excellence. AI-related hiring in this sector is primarily connected to data engineering roles, where organisations are cleaning and structuring data ahead of more extensive AI implementations, rather than directly hiring for purely AI-focused positions.
“The accounting and finance sector is experiencing a significant shift towards data analytics and AI-driven roles. Companies are increasingly leveraging AI capabilities to automate routine tasks such as accounts payable, accounts receivable, credit control, and payroll. This shift is creating high demand for professionals skilled in tools like SQL and power business intelligence, particularly in commercial finance roles such as business partners and financial analysts. A notable trend driven by automation is the reduction in graduate-level hiring, raising concerns about potential shortages of experienced mid-level professionals, which could impact future business operations and growth.
According to Keevans demand for life sciences and engineering roles remain stable, driven largely by increased automation and compliance requirements.
Hiring in business support roles have seen increases thanks to the return-to-office trend. However, AI is beginning to influence customer service roles thanks to the rise of agentic AI.
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