Wexford Employers Cutting Permanent And Graduate Hiring As Staffing Costs Soar

Employers are increasingly turning towards temporary and contract workers as the cost of taking on permanent staff continues to rise.

President of the Employment and Recruitment Federation Siobhan Kinsella says the organisation's monthly surveys show permanent vacancies are falling, along with opportunities for graduates.

Temporary and contract vacancies, however, are increasing.

Ms Kinsella said the change does not necessarily mean the work has disappeared, but that employers are becoming more reluctant to make the financial commitment involved in taking someone on permanently.

She said the cumulative cost of employing an individual has increased by around 17 per cent over the past two years as a result of a range of measures.

Those include increases in employers' PRSI, additional statutory leave provisions and pension auto-enrolment.

She also highlighted youth unemployment, which she said is running at approximately 13.2 per cent nationally among people aged under 25.

Ms Kinsella warned that higher employment costs can make it particularly difficult for younger people trying to secure their first job.

She said an employer paying around €30,000 for an entry-level position may now seek someone with previous experience because of the overall cost associated with the role.

Graduate recruitment is also becoming more difficult, with Ms Kinsella saying securing a first graduate job is significantly harder than it was 12 or 24 months ago.

She said smaller indigenous businesses in areas including hospitality, retail and healthcare can be disproportionately affected because they often operate on tighter margins.

However, she was strongly positive about County Wexford's longer-term prospects.

Ms Kinsella said Wexford is in one of its strongest positions in decades to attract investment, pointing to Rosslare Europort, the county's business community and major indigenous employers.

She said Wexford now has a strong case to put forward to the IDA when seeking foreign direct investment, manufacturing projects and higher-value employment.