Views & Opinions

What The Recruiters Say

“Clearer tax guidance, all contractors spend half their lives trying to interpret Revenue rules written in a language that would confuse a saint. More clarity on allowable expenses, simpler rules around BIK, and a clean, modern framework for self-employed versus employee status would save everyone grief, especially in sectors like IT, engineering and healthcare.”
Quote from Respondent

The contracting sector in Ireland continues to strengthen in 2026, recruiters recognise the change in how organisations access skills and deliver work.

Recruiters report reliance on contractors to provide flexibility, specialist expertise, and delivery speed in uncertain conditions. Confidence remains high. 70% of recruiters expect the number of contract roles to increase over the next 12 months, while 73% believe the contracting sector will grow over the next three to five years. This points to contracting being an important part of the future of workforce strategy.

Growth is being supported by ongoing demand across regulated and delivery-intensive sectors, where access to skills and scalability remain critical. Recruiters report stable expectations around rates and utilisation, suggesting a market focused on continuity and value rather than rapid expansion. Recruiters remain positive however they are balancing optimism about demand against more cautious client behaviour.

Recruiters believe structural support for independent professionals remains weak. Access to mortgages continues to be the most significant barrier, alongside the need for clearer tax guidance, more allowable expenses, and better access to benefits such as pensions, income protection, and healthcare. Visa processing and work permission clarity are also seen as constraints, particularly for highly skilled roles, where delays can prevent timely placements.

Recruiters also highlight the need for clearer government communication and stronger recognition of contracting as a legitimate and valuable form of work. This includes clearer employment definitions and guidance following recent legal developments, which have increased caution among client organisations. Contractors play an important role in supporting multinational firms, scaling projects, and attracting foreign direct investment, and recruiters believe this contribution should be more openly acknowledged.

In response to demand, many recruitment firms continue to invest in contract capability, expanding contract desks and expertise. With strong expectations for contract growth in 2026 and beyond, recruiters see contracting as a key commercial opportunity, but are looking for policy, regulation, and infrastructure to improve to better recognise and support the independent workforce.

Industry Breakdown

Recruitment for contracting roles is concentrated in six key industries: Information Technology, Life Sciences, Pharmaceuticals, Medical Devices, Engineering and Finance.

*Note: The sum of the % in the graph is not 100% as some recruiters are hiring contractors for multiple industries.

Contract Desk

Recruiters were asked whether the number of contractors on their books had decreased, increased or stayed the same. Over half reported that the number of contractors had increased 51% up from 48% in 2025. However, in 2026 the number of agencies who said the number of contractors on their books had decreased has increased from 21% in 2025 to 27% in 2026.

Average Length of Contracts Offered

The average contract length offered by recruiters has increased in 2026, with 62% of recruiters offering 12 months contracts in 2026 up from 49% in 2025. There was a drop in 6 months contracts being offered down from 36% in 2025 to 21% in 20206. This would indicate more stability for contractors.

When you fill a contract role, what percentage of the candidates have never contracted before?

37%

2026

40%

2025

40%

2024

Contract Roles

88% of contract roles are reportedly filled within 6 weeks up from 80% in 2025. More than half 52% are filled in less than 4 weeks. 10% of contract roles in 2026 took 7 to 8 weeks to fill, down from 18% in 2025. Recruiters reported client indecision as a factor increasing the time it takes to get contractors started. 37% of contractors placed are new to contracting.

The increase in the speed with which contractors are placed could indicate clients and recruiters are both getting more familiar with the model and/or there is greater availability of talent.

Challenges for recruiters when placing contractors

In 2026, the biggest change is the rise in candidate hesitation about moving from PAYE into contracting. 83% of recruiters report that candidates are worried about leaving a PAYE role, compared with 58% in 2025. This points to a stronger preference for perceived stability. It also suggests that candidates are weighing risk more carefully, even when contract opportunities are available. Mortgage concerns remain the most frequently cited challenge and increased slightly from 83% to 85%, reinforcing how perceived treatment of contractors in access to lending continues to influence their decisions.

Further Candidate Concerns

Concerns linked to security and protection remain high. Worry about job security is almost unchanged at 80% in 2026 compared with 81% in 2025, showing that fear of income gaps and contract endings continues to affect decision making. Anxiety about losing employment benefits increased from 62% to 66%. This highlights ongoing concerns around sick pay, paid leave, pensions, and insurance, and highlights the need for clearer explanations to candidates of how these can be managed while contracting. Some pressures eased for recruiters. Counteroffers from employers or client companies fell from 41% to 36%, which may indicate fewer retention attempts or less appetite among candidates to stay in permanent roles once they have decided to explore contracting. The proportion selecting “Other” reasons dropped sharply from 40% to 17%. This suggests that candidate concerns are now more concentrated around a small number of clear issues rather than a wide range of factors.

Benefits candidates receive from contracting

In 2026, recruiters remain clear that higher pay is the strongest benefit contractors receive from contracting, but the strength of agreement has softened. 90% agree that higher pay is a key benefit, down from 95% in 2025. While still dominant, this reduction suggests that pay alone is less convincing as a differentiator, possibly reflecting tighter budgets or greater candidate focus on security and certainty. Flexibility also declined as a perceived benefit for contractors, with agreement falling from 76% to 68%. This points to a reality where flexibility is still valued, but perhaps it is seen as a given rather than perceived as a benefit.

Benefits for candidates

The order of importance of contractor benefits shows some change between 2025 and 2026. Higher pay remains the top benefit in both years and continues to rank first. Flexibility also stays in second place, although its perceived importance has weakened. Below these two, the ranking changes. In 2025, work–life balance ranked ahead of upskilling, but in 2026 upskilling moves ahead, with 53% agreeing it is a key benefit compared with 40% for work–life balance. This indicates that development and future employability are now valued more highly than lifestyle outcomes. Access to sought-after roles remains mid-ranking in both years, though its importance has eased slightly. Aid to returning to employment has strengthened marginally, with agreement increasing to 51% in 2026 from 49%.

Skillsets in Demand

Recruiters were asked what skillsets will be most in demand in the next 12 months in their industry. Demand for the next 12 months is concentrated around delivery, engineering, automation, and emerging technology, with regulation and compliance close behind. The 2026 outlook is delivery-led and execution-focused. Project management and engineering dominate. Automation and validation remain in high demand. AI and data have moved firmly into the top tier. Clients are prioritising skills that can be deployed quickly, operate in regulated environments, and support large-scale transformation.

Top 10 In-Demand Skillsets

 

1 Project Management: Includes project managers, project planning, Capex delivery, agile project roles, and programme leadership. Demand spans all sectors.
2 Automation and Control Systems: Covers automation engineers, Delta V, Allen Bradley/Rockwell, GMP automation, and digital manufacturing. Strongly linked to capital projects and efficiency drives.
3 Validation, CQV, and Commissioning: Includes CQV engineers, equipment validation, fill/finish experience, and commissioning roles. Consistently mentioned across life sciences and manufacturing.
4 Engineering (Process, Electrical, Mechanical, Civil): Includes process, chemical, electrical, mechanical, MEP, construction, and telecoms engineers. Mid-level engineers are highlighted as particularly hard to source.
5 AI, Data, and Machine Learning: Includes AI skills, AI automation, data engineering, analytics, ML, prompting, and platforms such as Databricks and MS Fabric.
6 Cybersecurity and IT Security: Covers cyber security, OT security, GRC, Microsoft Defender, operational resilience, and cloud security.
7 Cloud, Infrastructure, and DevOps: Includes Azure, cloud migration, infrastructure, DevOps, VMware, and enterprise cloud administration.
8 Quality, Regulatory, and Compliance: Includes QA, QC, quality engineering, regulatory, QP, EHS, and pension or investment compliance. Often linked to regulated industries.
9 Software Development and Digital Roles: Includes software engineers, Java, full-stack developers, product owners, business analysts, and HRIS or ERP transformation roles.
10 Trades and Technical Specialists: Includes electricians, maintenance technicians, CNC machinists, aviation engineers, and site-based specialists. Demand is described as immediate when skills align.

The hardest roles to fill over the next 12 months according to recruiters are:

Recruiters were asked what roles will be hardest to fill in the next 12 months. Roles hardest to fill in 2026 combine three traits. Specialist knowledge. Regulated or safety-critical environments. On-site or hybrid delivery. Generalist roles appear less frequently. Scarcity is highest where experience cannot be substituted or trained quickly.

  • Project Managers and Project Controls
  • Automation Engineers
  • Validation, CQV, and CSV Engineers
  • Electrical Engineers
  • Cybersecurity Specialists
  • Engineering Roles (Mechanical, Process, Project)
  • Data, AI, and Emerging Technology Roles
  • Quantity Surveyors and Construction Specialists
  • Quality, EHS, and Compliance Roles
  • Specialist IT and Systems Roles

Recruiters advise independent professionals to upskill in the following areas based on current client needs:

  • AI and Machine Learning
  • Validation, CQV, and Commissioning
  • Automation
  • Data Analytics and Data Skills
  • Project Management and Delivery
  • Cybersecurity and IT Security.
  • Cloud Technologies
  • Quality, Compliance, and Regulatory Skills
  • Engineering Specialisation and Dual-Skilling
  • Sustainability and Green Skills

Upskilling priorities in 2026 are clear. Technology-led skills dominate. Contractors who combine deep domain knowledge with AI, data, or automation capability are best positioned.

There is a clear difference between what clients are hiring for now and what recruiters advise contractors to prepare for next. Current demand is focused on immediate delivery. Project management, automation, engineering, validation/CQV, and cybersecurity dominate because they are scarce, billable, and essential to keeping projects moving in regulated and capital-intensive environments.

Upskilling advice is more future-focused. AI, machine learning, data analytics, and cloud skills feature much more strongly here than in current demand. This reflects expectation rather than reality. Recruiters are signalling where opportunity is likely to grow, not where most contracts sit today.

Some areas align across both views. Project management, automation, and validation appear in both lists, linking present demand with future relevance. These skills remain safe investments.

The gap is about timing. Clients are solving today’s problems. Recruiters are preparing contractors for tomorrow’s market. The strongest position sits in the overlap. Contractors need to maintain deep delivery skills while adding targeted AI or data capability that strengthens an existing role.

Benefits for Client Organisations

In 2026, recruiters continue to see strong and consistent benefits for client companies engaging contractors. Access to skills remains the most important benefit, with 93% of recruiters agreeing, highlighting that contractors remain a primary route for accessing scarce and specialised expertise.

Scalability strengthens in relative importance in 2026. 88% of recruiters agree that contracting supports scaling teams up or down, compared with 86% in 2025. This highlights the growing need for flexibility in headcount and cost control. Agreement that contractors enable faster completion of projects falls from 91% to 86%, suggesting that while speed remains a core benefit, delivery environments may be more complex or capacity more constrained than in the previous year.

The perceived value of contracting as an alternative during hiring freezes has reduced.

In 2026, 83% agree with this benefit, down from 95% in 2025. This indicates that hiring freezes, while still relevant, are less dominant in shaping contractor engagement than they were previously. At the same time, other benefits become more valuable. 71% of recruiters agree that contractors bring innovation and fresh perspectives, up from 68% in 2025, pointing to a growing appreciation of their contribution beyond pure delivery.

New measures in 2026 provide further insight. Risk management is recognised by 72% of recruiters, showing that contracting is increasingly seen as a way to manage uncertainty and exposure. Access to skills remains the primary benefit, however scalability and risk control are gaining importance, and there are changes in the narrative around contracting recognising that it provides solutions beyond short-term hiring constraints.

Barriers to recruiting contractors from Clients

In 2026, cost remains the most significant barrier when clients engage contractors, but its influence has reduced. 66% of recruiters report cost as a concern, down from 80% in 2025. This suggests that while budget pressure remains, clients may be more accustomed to contractor rates or are placing greater value on delivery and access to skills.

Compliance-related concerns remain high and unchanged year on year. 40% of recruiters report concerns around correct compliance structures in both 2025 and 2026. This follows an increase from 30% in 2024 and is likely influenced by heightened awareness of regulatory risk, including the impact of the Domino’s case. Related concerns around worker classification fall from 37% in 2025 to 30% in 2026, indicating some improvement in understanding or confidence around engagement models.

Uncertainty has increased. “Concerns of the unknown” rise to 41% in 2026 from 31% in 2025. This suggests a more cautious client mindset, possibly driven by economic uncertainty or changing regulatory expectations. Concerns around managing contractors also increase, from 20% to 33%, perhaps highlighting perception of challenges linked to remote working, oversight, and integration into teams.

Future Expectations

Recruiter outlook remains positive in 2026, but the balance of expectations has changed compared with 2025. Confidence in the Irish economy has strengthened. In 2026, 49% of recruiters expect the economy to improve compared with 2025, up from 47% who expected improvement in the previous year. At the same time, the proportion expecting a decline increases from 14% to 19%, while those expecting stability fall from 39% to 32%. This points to a more polarised outlook, with firmer views at both ends.

Expectations for contract role availability remain strong.

In 2026, 70% of recruiters expect the number of contract roles to increase over the next 12 months, marginally down from 71% in 2025. The share expecting a decrease rises from 6% to 12%, indicating a more cautious short-term view despite continued overall optimism.

In 2026, 73% of recruiters believe the contracting sector will grow over the next three to five years, signalling strong confidence in the sustainability of the market. Expectations around rates are more cautious. 37% expect daily rates to increase, while nearly half anticipate no change. Working days are expected to remain stable, with 63% forecasting no change and 27% expecting an increase. Recruiters remain positive but more measured in 2026, with growth expectations balanced by greater caution.

Confidence Index

Recruiters report optimism for both the economy and the contracting sector with confidence index scores of +17 and +31 respectively.

Barriers experienced by Recruiters

Recruiters were asked what do you think client organisations, or other stakeholders, could do to make it easier to place contractors into roles?

Responses identified a number of challenges faced by recruiters when trying to place contractors that if addressed would make placing contractors easier. They highlight process and mindset, rather than talent availability, as the main barriers to placing contractors.

Speed and urgency in hiring: The most dominant theme is pace. Recruiters repeatedly stress that slow processes result in lost candidates. As one respondent put it, “many hiring managers don’t act fast enough,” while others simply summarised the issue as “speed of process, interview, offer time.” Delays in CV review, interviews, and decision-making are seen as particularly damaging in a contractor market, where good candidates are often available for short windows only. Several recruiters note that a two-week end-to-end process is “ideally” what is needed to stay competitive.
Clear roles, timelines, and budgets upfront: Lack of clarity is another major frustration. Recruiters highlight situations where “sometimes we don’t get job specs” or receive only “1–2 sentences sent via email.” They call for clear role definitions, agreed timelines, and budget approval before roles go to market. One respondent stresses the need to “be certain you are approved to hire before going to market,” while another highlights the importance of “a clear interview process and budget in advance of releasing roles.”
Rates aligned to the market: Commercial misalignment features strongly. Recruiters repeatedly advise clients to “revise rates to reflect the market” and, in some cases, “increase rates, perhaps offer a completion bonus.” Strong rates, alongside longer contracts, are seen as critical to attracting scarce skills and maintaining momentum once candidates engage.
Better engagement and communication with agencies: Recruiters emphasise the value of active engagement rather than portal-only processes. They call for intake calls, direct access to hiring managers, and regular feedback. One response notes that “too many roles come through portals where we get no engagement with the client,” making it difficult to answer candidate questions. Dealing directly with hiring managers is described as “great,” while additional layers through HR, MSPs, or RPOs are seen to “add extra steps” and slow decisions.
Flexibility in how roles are structured: Flexibility is repeatedly cited as a differentiator. Recruiters highlight the need for openness to hybrid or remote work, especially “in regions outside of Dublin.” Others encourage clients to be flexible on requirements, location, or even “partially filling roles with available contractors instead of trying to fill the full requirement with one candidate.”
Decision-maker involvement from the start: Several responses stress the importance of hiring manager involvement early in the process. “Hiring manager / line manager involvement from start of briefing call” is seen as critical, as speed of decision-making and clarity are “interlinked.” Delays often arise when decision-makers are not available to interview or give timely feedback.
Longer contracts and continuity: Recruiters also point to contract structure. Longer durations of “12+ months,” early communication around extensions, and, in some cases, retention or sign-on bonuses are seen as ways to improve candidate confidence and reduce churn.
Mindset towards contracting: Finally, recruiters call for a cultural shift. Clients are encouraged to “be more open and understanding of the benefits of contracting” and to treat contractors as a “strategic talent resource” rather than a short-term cost. One respondent highlights the need to stop “worrying about them moving from contract to contract” and instead focus on value delivered.

What the Recruiters Say

We asked recruiters for their own statements on the contracting industry and here is what they had to say…

“1. Greater Contracting Clarity and Consistency 2. Improved Contracting Pathways 3. Stronger Player/Employee Welfare Measures 4. More Professional Contract Management Processes 5. Enhanced Governance and Oversight 6. Streamlined Legal and Compliance Requirements”
“Greater clarity, consistency and support structures put in place for contracting. This includes more transparent guidelines around tax, compliance and IR35-style determinations.”
“Government communication to start ups or companies going on a growth to consider contracting so they can scale faster, highlighting the benefits it brings.”
“Better support for housing, easier to get mortgages is the biggest problem we face. Out side of economical issues, and contractors getting better pay to live in better countries with better experiences.”
“Clearer tax guidance... More clarity on allowable expenses, simpler rules around BIK, and a clean, modern framework for self employed versus employee status.”
“Faster and better way of evaluating qualified personnel for visas”
“Better access to financial schemes for rainy days, pensions, healthcare plans and injury plans for ISPs”
“Equal notice periods, establishment of allocated office days/regulation across that requirement”
“Greater ability to access mortgages”
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Next - What Clients Say

  • Criteria Driving Demand For Contract Roles
  • Concerns Or Barriers To Engaging Contractors
  • Why Companies Use Recruitment Agencies
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