The Key Highlights

In 2026 earnings remain stable compared with 2025, and as before command a pay premium over equivalent employment; albeit losing some ground this year. Contractor earnings in 2026 remained resilient in nominal terms compared with 2025. However, they did not keep up with inflation and so declined in real terms. The average daily rate increased slightly from €552 (2025) to €556 (2026), while the median rate held at €500. Average annual earnings also improved marginally from €117,978 in 2025 to €118,177 in 2026, with median earnings rising to €114,000 from €108,500 in 2025, suggesting increased earnings for a larger share of contractors. The high-skilled Independent contractors in our survey earn €34,344 more than equivalent (managers, directors and professional) employees giving rise to 41% independent contractors pay premium over employees. This has narrowed on previous years indicating the cost of income increases in the employed sector not being matched by independent contractors.

Contracting enables greater workforce participation and retention, allowing individuals to access and remain active in the workforce beyond traditional employment. While most respondents moved to contracting from employee roles, 21% entered contracting from outside traditional employment, including unemployment, career breaks, education, and caring responsibilities. This highlights the value of contracting as a re-entry mechanism and as a model that supports continuity of participation in the workforce across life stages. Without access to independent work, nearly one in five respondents indicate they would exit or partially exit the workforce through unemployment, retirement, emigration, or unpaid activity. Contracting helps retain experienced and skilled individuals in productive work who might otherwise disengage, delivering both economic and social value.

Contractors’ views on AI in 2026 are balanced but cautiously optimistic, with 43% seeing a positive impact and 22% a negative one, indicating that AI is viewed more as an enabler than a threat. Optimism is strongest in IT, Finance, and Engineering, where AI directly supports knowledge work and productivity, while Medical Locum and Pharma roles remain largely neutral due to regulation, risk, and the people-centred nature of the work.

• Contractors recognise the need to upskill technically abut also stress the importance of ethics and compliance, showing strong awareness that AI carries responsibility as well as opportunity.
• Commitment to AI upskilling appears weak, 63% are concerned they do not know enough about AI. There is a call for greater government support for AI training for the self-employed. In practice, current AI use is pragmatic and controlled.
• The most significant concern relates to job security, with fears that AI may reduce contract opportunities, particularly at junior and entry levels, and gradually replace specialist roles.
• There is also strong concern about over-reliance and deskilling, with contractors warning that unquestioned trust in AI outputs may erode critical thinking, professional judgement, and human expertise.
• Accuracy and trust are viewed as major risks, especially in safety-critical and regulated environments. Data privacy and confidentiality limit adoption in sectors governed by strict client and GDPR requirements.
• Contractors express frustration with weak governance and rushed implementation, where AI is adopted as a trend rather than a carefully managed tool.
• Wider concerns include loss of creativity, authenticity, human connection, and environmental cost of AI. Contractors’ concerns centre on misuse, insufficient oversight, and lack of support, rather than opposition to AI itself.

Retirement planning is now the dominant financial goal for independent professionals, with 58% prioritising saving for retirement in 2026, up sharply from 37% in 2025.

Retirement funding plans show a largely proactive but uneven picture. Most contractors rely on a private pension, while more than a third expect the State pension to form part of their retirement income. Property also plays a role, with some planning to use rental income and others considering downsizing or equity release. Nearly one in five contractors are concerned they will not have enough for retirement, and 9% have not yet considered how they will fund it. Independent professionals are engaged in financial planning, but there are disparities in security, resilience, and confidence about the future.

Annual earnings saw a narrowing of the gap between project-based and task or gig-based work. Project-based contractors earned an average of €122,586, down slightly from €124,823 in 2025, while gig-based contractors earned €108,046, up strongly from €94,498. The earnings premium attached to project work fell from 32% in 2025 to 13% in 2026. This change was driven primarily by rising gig earnings. Hybrid workers sat between the two models, with average earnings of €98,331.

Project-based work remains the largest (6.5 times more than gig-based work) and highest-value segment of independent work, it is associated with innovation, technology adoption, and business transformation. It delivers higher earnings and stronger satisfaction levels. However, confidence indicators signal a more cautious outlook. In 2025, confidence in the contracting sector stood at +28 among project-based contractors and +16 among gig-based contractors. In 2026, project-based confidence fell to +21, while gig-based confidence increased to +22, marking the first time gig confidence exceeded project confidence. Confidence in the Irish economy weakened for both groups, falling from +18 to +8 for project-based contractors and from +12 to -3 for gig-based contractors.

The project economy remains strong, but 2026 sees wellbeing decreasing, earnings converging, confidence in economic outlook reducing, and uncertainty rising. Independent professionals continue to adapt, but the outlook points to a more cautious phase for the project economy in the year ahead.

The most significant change in 2026 was the reversal of women’s pay advantage seen in 2025. After outperforming men in 2025, women’s average daily rates and annual earnings declined in 2026, while men’s increased. Women’s mean day rate fell from €565 to €540 (-4.4%), while men’s increased from €548 to €563 (+2.7%). In 2025 women earned approximately €17 /day mor than men, a gender pay gap of 3.1% in favour of women, in 2026 this has reversed, where women now earn on average €23 less than men /day.

As a result, the gender pay gap widened to 7.6%, reversing progress made in 2025 where the reported gap was just 4% and exceeding the reported Irish labour market gap of 7%. The widening gap reflects not just lower female earnings, but stronger earnings momentum among men in their 30s and 40s.

Despite weaker financial outcomes, contracting continues to be a deliberate choice for women. In 2026, 81% of women entered contracting voluntarily, and their intention to remain contracting held steady at 76%. Reported satisfaction levels remain high. Women continue to value flexibility, work-life balance, and quality of life. However, satisfaction levels with rate of pay fell and wellbeing indicators also weakened. Women remain highly motivated and committed to contracting, but 2026 shows greater financial pressure and emotional strain, particularly at mid-career stages.

Contractors report very positive experiences of leadership. Just over three quarters (76%) of contractor think that their leaders were effective in achieving the organisation’s performance objectives. Similar proportions felt the same way about being satisfied working with their leadership. The recipe for this effective leadership performance is revealed to some extent with that the vast majority of respondents agreeing that their leaders are: authentic, transparent, inclusive and encourage good teamwork.

The survey results also reveal that contractors indicate that their leaders typically adopt a blended rather than binary dominant leadership style. A total of 75% of respondents agree that their leadership uses a collaborative leadership approach with only 8% disagreeing. However, for most respondents this is blended with a directive leadership style as 58% of contractors agree that their leadership manifests this style with 17% disagreeing. Strong direction but then giving contractors autonomy and an opportunity to collaborate with the leadership to deliver results seems to be the prevalent formula for effective leadership in this sector.

Older contractors continue to deliver the strongest outcomes across the contracting workforce, reinforcing the value of age and experience. Contractors aged 60+ now make up 17% of the total and command a 72% pay premium on equivalent employees. More accumulated expertise gives older professionals a knowledge advantage, while their longer track record reduces perceived risk for clients. These advantages translate directly into stronger financial outcomes, with average daily rates rising from €657 to €705 and average annual earnings reaching €143,968, the highest of any age group. Contractors aged 50 and above maintain an earnings premium of around 31% compared with those under 50, underlining the market value placed on judgement, reliability, and specialist expertise. Importantly, 8% of respondents indicated they would retire if not self-employed, highlighting the sector’s critical role in enabling older professionals to work longer and continue contributing meaningfully to the economy. Beyond earnings, older contractors report the highest wellbeing and job satisfaction, with the lowest levels of loneliness and burnout.

In 2026, contractor wellbeing shows a deterioration compared with the previous year. Reports of loneliness increased to 29% and burnout rose to 17%, both up from 22% and 13% respectively in 2025. This marks a reversal of the improving wellbeing trend seen in 2025, when indicators had eased slightly from 2024. The 2026 data suggest that pressures associated with independent work are intensifying, even as overall job satisfaction and flexibility remain high.

The 2026 confidence index results point to a reduction in expectations rather than a loss of confidence. Across all groups, views on the performance of the Irish economy decrease significantly compared with 2025. The overall economic confidence score falls from +17 to +6, with a consistent decline by gender and across all major industries. This alignment suggests a shared expectation of slower economic conditions rather than sector-specific concern. The 2026 findings show confidence remains intact but more restrained among contractors and recruiters, while client organisations signal strong and growing demand for contract talent.

Sector: Medical Locum contractors remain the most positive about the economy at +9, while ICT reports the lowest confidence at +0.3, followed by Engineering at +5. Pharma and Finance both remain modestly positive at +7. The largest year-on-year reductions appear in ICT and Engineering, with ICT falling from +31 to +20 and Engineering from +29 to +18. Medical Locum is the only sector to show an improvement, rising from +4 to +11, although it continues to record the lowest confidence overall.

Generation: Views on the Irish economy decline across every generation in 2026. Boomers and Gen X both fall from +15 to +6, while Millennials decline from +18 to +5. Gen Z remains the most positive about economic performance at +9, although this also represents a year-on-year fall. Confidence in the contracting sector remains positive across all generations. Boomers become more confident in 2026, increasing from +22 to +24, reflecting continued belief in demand for experience-led skills. Gen X and Millennials report lower confidence than in 2025, suggesting increased caution in mid-career cohorts. Gen Z stands out, with confidence rising sharply from +23 to +30, indicating strong belief in long-term contracting opportunities despite wider economic uncertainty.

Contractors: Confidence in the contracting sector over the next three to five years remains positive in every industry, but at lower levels than last year. The overall confidence index declines from +26 in 2025 to +21 in 2026, signalling a more cautious but still resilient outlook.

Gender: Both male and female contractors report lower confidence in 2026 across both the Irish economic performance and the contracting outlook. Female contractors remain slightly more positive than male contractors.

Recruiters and Clients: Recruiters continue to report positive expectations for the contracting market, but with reduced momentum. Their confidence in the number of contract roles over the next 12 months declines from +37 in 2025 to +31 in 2026. Confidence in the Irish economy also eases slightly, from +19 to +17, indicating sustained demand alongside increased caution. Client organisations present a contrasting picture. Their confidence in demand for contract roles rises sharply from +27 in 2025 to +59 in 2026, signalling a strong expectation of increased reliance on contractors. Confidence in the Irish economy among clients also strengthens to +43, exceeding both recruiter expectations and last year’s levels.

In 2026, contractor demand remains stable, 26% of organisations expect contractor numbers to increase by more than 10% in the next 12 months, however 60% anticipate levels remaining close to current numbers. Demand continues to be driven primarily by the need for organisational agility, reflecting the growing reliance on flexible workforce models. Access to scarce skills remains a key driver, reinforcing persistent capability gaps across key sectors. Cost saving and headcount controls are also influential, suggesting contractors are being used to sustain output under permanent hiring constraints. Candidate choice is playing a larger role than in 2025, pointing to stronger preference for independent work.

Client companies identify that future value lies in blended skillsets. Technical and digital capability must be matched with experience, adaptability and strong delivery and communication skills to meet evolving organisational needs.

• Advanced digital expertise dominates, with strong demand for applied AI, data, cloud and cybersecurity skills that solve real business problems and support safe, effective decision-making.
• Project, product and change management remain essential, reflecting the need to translate strategy into delivery in complex and regulated environments.
• Senior technical and engineering expertise, with a clear preference for experienced specialists who bring depth, credibility and compliance awareness.
• Human capability with leadership, communication and stakeholder skills seen as essential for working effectively across teams and influencing outcomes.
• Regulatory, quality and operational excellence skills, reflecting tighter governance, ESG and sustainability requirements.