Ireland's Project Economy 2025
Views & Opinions

What The Clients Say

“As AI usage grows, talent with expertise in AI ethics, responsible AI, and compliance with emerging regulations will be crucial to ensure ethical development and deployment of AI systems.”
Quote from Respondent

The 2025 survey results reveal a dynamic and growing demand for professional contractors across a diverse range of industries in Ireland.

Multinational companies make up 67% of client organisations, with 23% being domestic. 78% of these companies have over 500 employees, while 22% have 50 employees or fewer, showing the relevance of contractors to businesses of all sizes. More than a quarter (28%) of companies engage 1-30 contractors at any time, while a third engage 200 or more contractors at any one time. This demonstrates that regardless of size or scope, Irish companies value contractors as an essential component of their workforce.

Client companies cite numerous benefits of engaging contractors, including the ability to progress projects quickly, access specialised skills on demand, and maintain agility in response to shifting market conditions. 77% of contractors in these companies are (SOC2) professionals, such as IT specialists, engineers, accountants, analysts, and doctors. The Pharma sector leads in contractor engagement, representing 30% of the market.

Noise

Demand for contract roles is being driven by two primary factors: a lack of skills in-house and the need for agility. Clients are increasingly recognising the value of contractors in meeting these challenges, and agencies are encouraging more companies to engage with contractors. Clients suggested ways in which concerns/ barriers to engaging contractors could be overcome, including clearer policies and legislation around contracting, enhanced communication, education and training about the contracting industry, fairer treatment, and better financial security for contractors.

Looking ahead, client companies have identified critical skills required to achieve their organisational goals. These include expertise in technology, particularly AI and cybersecurity, engineering capabilities, leadership, and innovative problem-solving. Emerging policies, such as those on sustainability, auto-enrolment, and AI, are also expected to influence the types of talent companies need.

Optimism about the future is high, with companies expressing confidence in both the contracting sector and the Irish economy. Confidence index scores are positive, standing at +27 for the contracting sector and +22 for the economy, reflecting a strong outlook for 2025 and beyond.

22% of companies had between 11 and 50 employees up from 17% in 2024.

Clients Industry Profile

Companies engaging contractors are spread across all the major contracting industries. Pharma is once against the largest industry represented at 30% up 10% on 2024, likely a reflection of increased investment in new plants and projects by major companies in the sector. ICT up from 8% in 2024 to 13% in 2025 perhaps signalling the increased requirements by companies to re-engage contractors to complete projects following the large number of redundancies in 2023.

67% of client companies participating in the survey this year were multinationals and 23% were domestic Irish companies. 22% of companies had between 11 and 50 employees up from 17% last year, with 60% of companies involved in the survey having 500 employees or more.

44% of companies expect to engage the same number of contractors this year as last, with 46% expecting the numbers of contractors they will engage to increase in the next 12 months.

Engaging Contractors

33% of companies reported engaging more than 200 contractors at any one time, 16% engage between 11 and 30 contractors at one time, 12% engage between 1 and 10 contractors and 11% engage between 51 and 100 contractors at any one time.

44% of companies expect to engage the same number of contractors this year as last, with 46% expecting the numbers of contractors they will engage to increase in the next 12 months.

Contractor Recruitment

Companies use various methods to find and recruit contractors. 38% use third parties such as recruitment companies to recruit on their behalf, 19% recruit directly and 6% use a referral process to assist in recruitment. 37% of companies use a combination of approaches to recruit their contractors.

Contractors are engaged across all functions in client organisations, 20% as Managers, directors and senior officials (SOC1), 77% as Professionals (e.g., IT specialists, engineers, accountants, analysts, scientists, doctors, etc. SOC2), and 30% as Associate professionals and technicians (e.g., counsellors, paramedics, graphic designers, quality assurance technicians, etc. SOC3).

Why Companies Use Recruitment Agencies

Clients use recruitment companies to recruit contractors for a number of key reasons. 46% of clients use recruiters to reduce the time to hire, and 35% source talent through recruiters to reduce hiring costs. There has been a huge increase in the number of companies who reported using recruiters to reduce risks they associate with hiring contractors up from 13% in 2024 to 35% in 2025.

The Biggest Concerns Or Barriers To Engaging Contractors

A number of barriers and concerns exist for companies when engaging contractors, 58% agree that the biggest barrier is cost, 53% reference contractors right to work and other HR implications, 52% concerns of the unknown and 49% report tax implications if contractors are not set up correctly. Cost concerns may always be a factor for clients, but other concerns could be addressed if there was greater clarity from government in terms of legislation, education and information around contracting.

How to Reduce Client Concerns

Client companies were also asked what they thought could be done to reduce the concerns they have or the barriers they face when engaging contractors. They highlighted a number of areas where improvements could be made. Their suggestions, which are also listed here, included establishing clearer policies, enhancing communication, and delivering more education and training about contracting. This combined with fair treatment and providing greater financial security for contractors would make engaging contractors easier for them.

Improve the following areas to increase client engagement of contractors:
1 Policies and legislation
2 Communication and transparency
3 Training, education and awareness
4 Fair treatment
5 Enhanced financial and contractual security for contractors
6 Reassurance and promoting the benefits of contracting

Criteria Driving Demand For Contract Roles

In 2025 the highest reported factors driving demand for contract roles include lack of skills in-house, and to enable the company to be more agile. There has been a 13% increase this year in recruitment agencies suggesting the client engages a contractor. This aligns with agency results, which indicate a strategic shift towards expanding their contract desks.

Key skills currently in demand

Client companies were asked to identify the skills they find hardest to access in the current market. They highlighted both a shortage of specific skills and a lack of experience in applying these skills in real-world scenarios. Their feedback is summarised as follows:

Top 5 In-Demand Skills
1 AI and Automation Expertise – Including specialised AI expertise, automation engineering, and process controls.
2 Engineering Talent – Particularly experienced engineers with real-world site experience and specialised engineering fields such as BMS control, healthcare engineering, and automation.
3 ICT and Technology Skills – Including SAP, ICT infrastructure support, and niche technologies like Kubernetes.
4 Sales and Communication Skills – Quality sales professionals capable of building pipelines and individuals with strong communication and information-sharing abilities.
5 Specialised Science and Technical Knowledge – Including expertise in fields like CSV (Computer System Validation) and specialised sciences with a quality and practical mindset.

Skills required to meet future goals

Respondents were then asked to identify the key skills they think would be needed to achieve their goals in the coming years. Their responses highlighted the increasing importance of technology (with a strong emphasis on AI), engineering expertise, leadership capabilities, and innovative problem-solving to meet future organisational objectives.

Top 5 Future Skills
1 AI and Data-Driven Skills
2 Project Management and Leadership
3 Engineering and Technical Expertise
4 Problem-Solving and Innovation
5 IT and Cybersecurity Skills
Noise

New policies and the impact on future talent requirements

Companies reported new policies such as sustainability, auto-enrolment and AI will have an impact on the talent they require.

Artificial Intelligence (AI): AI emerged as a dominant theme. Several companies reported the need for expertise in AI ethics, compliance, and responsible AI usage.

Sustainability: Companies highlighted the increasing importance of sustainability policies, but did not identify any associated skills which would be required.
Regulatory Changes: Stricter regulations in areas such as data protection, compliance, and governance are expected to increase the needs for more skills in those areas.
Auto-Enrolment: The introduction of auto-enrolment policies is likely to create additional compliance and administrative roles.

Future Expectations

Clients are optimistic about the future of both the performance of the Irish economy and the contracting sector over the next 12 months. 48% expect the Irish economy in 2025 to outperform 2024 and 53% expect the number of contract roles to increase over the next 12 months. The confidence index scores are positive +27 in relation to the contracting sector and +22 in relation to the performance of the Irish economy in 2025.

Confidence Index

The confidence index scores of client organisations relating to both the performance of the Irish economy in 2025 and the number of contract roles that will be available remain positive for 2025. The performance of the economy in 2025 has a confidence index score of +22, down from +27 in 2024. The confidence index score for the contracting sector is +27  in 2025 a slight decrease on +28 in 2024..

What the Clients Say...

“There should be more support for remote workers and coworking hubs”
“Information on contracting, the options. Not to fear a leap from a comfortable salary role that you think may be safer!”
“I think Mortgages was the biggest thing for contracting and since this has now being addressed I feel this will help a lot in increasing Contractors.”
“Contractors must receive more support from government around tax breaks and social welfare support when the economy turns.”
“Have less transparency about contractors' pay, as Full Time Employees might get jealous and annoyed by much higher earnings by contractors.”
“More open communication on the use of contractors and their expertise being brought to the industry.”
“Need clearer legislation/regulations around the employment status and taxation requirements for contractors acting as daily rate contractors on a limited company basis.”
“Provide reassurance to those considering contracting/contractors of why it is a good option.”
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