Talent shortages growing with resources stretched

OVER 80 per cent of businesses are struggling to plug skills gaps in critical areas that are impacting productivity and growth, according to new research.

Ibec’s 2025 Skills Survey has found that the mismatch between available talent and the needs of a modern economy has moved from a marginal concern to a major strategic threat.

Findings of the study reveal that firms are managing intense competition for talent in a tight labour market amid escalating pressure to keep pace with emerging technologies, including AI.

Meanwhile, employers are expecting the competition for talent to increase in the next five years, further impacting the productivity of businesses in Ireland.

Recruitment for skills was highlighted as a major concern for businesses.

According to the report, large organisations are more than twice as likely to be training for AI compared to their smaller counterparts because SMEs are forced to prioritise immediate operational and compliance training over long-term strategic upskilling.

Ibec is calling on the Irish Government to unlock the National Training Fund (NTF) as a matter of urgency.

The business group cites the significant surplus in the fund, estimated to reach €3 billion by 2030, which it said signals “a clear underutilisation of resources.”

Meadhbh Costello, Ibec Senior Executive, said: “With talent shortages growing and internal resources stretched thin, it is deeply concerning that firms who are actively contributing 1 percent of their payroll to the National Training Fund are not able to access the supports they need to prepare their workforce for the future.”