There is growing concern in the states of the European Union (EU) about the economy with companies being cautious in plans of recruitment and staffing levels. In Ireland – part of the EU – employers are resorting to “quiet redundancies” to scale back their workforces as economic uncertainty has begun to hit hiring plans.
The latest Morgan McKinley Ireland Quarterly Employment Monitor reveals a growing trend of “stealth job cuts” as caution has crept in amid global turmoil following Donald Trump’s tariff rhetoric and the potential impact of artificial intelligence (AI). It also reveals growing concerns about AI generated CVs as some job candidates fail to meet expectations.
“Quiet redundancies, or stealth job cuts are referring to discreet changes in workforce structures that aren’t formally announced, which include non-renewal contracts, rescoping of roles or silent phasing out of certain positions,” said Trayc Keevans, an FDI director at Morgan McKinley.
As well as the non-renewal of contracts, she said employers might merge roles without announcing it publicly, or decide against replacing workers who had left.
Supply-chain and procurement hiring dipped slightly in the first three months of the year. This was driven by the return of some operations to the US, according to the report. Keevans said some life-sciences employers were evaluating their supply-chain and procurement operations, and what would make sense in light of the tariff plans.
“While we can’t definitely link all cautious hiring behaviour to the timing of the US tariff announcements, it’s clear that many employers anticipated disruption and opted for a more measured approach to workforce planning with global supply-chain and procurement roles being the most visibly impacted areas,” she said.
“In addition to a decline in virtual supply-chain hub operations being established here, we are seeing some multi-national firms repatriate elements of their supply-chain functions to the US, leading to the displacement of senior professionals in Ireland. These individuals are now facing longer periods of unemployment than would typically have been the case in previous market cycles.” Keevans added: “Despite having extensive experience many are finding it challenging to re-enter the workforce at the same level as companies remain cautious in their hiring strategies and prioritise transformation readiness over like-for-like replacements.” She said several factors were influencing this cautious hiring approach, including global economic uncertainty, regulatory changes and the adoption of AI-driven transformation. Despite the subtle shift in workforce strategy in relation to shedding staff, the report said that, overall, the professional jobs market had been holding firm in the face of economic headwinds.
Professional job opportunities rose by 2pc in 2024 and by 7pc on the previous quarter. The number of professional job seekers rose by 16pc compared with the same quarter last year. However, this represented a 4pc drop compared with the final three months of 2024.
The report noted that the national unemployment rate dropped to 3.9pc by the end of last month, down from 4.5pc at the close of last year. Keevans said the employment picture was increasingly complex – the data showed clear evidence of hiring confidence in sectors including technology, financial services and construction.
“The combination of global economic uncertainty , AI led transformation and anticipation around US tariffs suggests companies are shifting from reactive hiring to more cautious, long-term workforce planning”, Keevans said.
Many candidates were using AI to enhance or create CVs, but employers had raised concerns that they did not always accurately reflect the individuals encountered at interviews.
“Reports of mismatches between CV and candidate performance are becoming more common, placing pressure on screening processes and the assessment of authenticity,” Keevans said.
Meanwhile, the recruitment firm reported that organisations were, “adjusting” how they talk about diversity and inclusion. The report said multi-nationals had quietly pulled back on formal DEI budgets or job titles. (The writer is our foreign correspondent based in the UK)
Oman Observer is now on the WhatsApp channel. Click here
