Urgent Update: Salaries Stagnate Amid Inflation in Ireland

UPDATE: The latest 2026 Morgan McKinley Salary Guide reveals alarming trends in the Irish job market, with salaries failing to keep pace with inflation. Just released, the report indicates that median permanent salary growth has stagnated at 2%, leaving many job seekers disillusioned as they look for better pay.

This urgent update highlights how salary increases have largely flatlined, with many positions now tracking below inflation rates. Unlike previous years, the slowdown in salary growth is not due to weak demand for talent, but rather the complex demands of digital transformation, regulatory compliance, and an overall focus on cost management.

As of now, employers are shifting their hiring strategies, moving away from broad salary increases to a more targeted investment in specialist roles. This shift means that only specific disciplines, such as advanced technology, cybersecurity, and regulatory risk compliance, are seeing meaningful salary growth—between 4% and 8%—due to acute skills shortages.

Trayc Keevans, global FDI director at Morgan McKinley, stated,

“Employers are not in hiring retreat, but they are being far more intentional.”

She emphasized that while demand remains strong for roles that drive transformation and compliance, organizations are no longer expanding teams or lifting salaries across the board.

The report also reveals that employers are increasingly focusing on quality-of-life factors to attract talent. Flexibility, hybrid work models, and clear career pathways are now just as crucial as salary. As Keevans notes, “Pay is no longer the default lever.”

In terms of demand, 2026 is seeing a surge in the need for specialists such as data engineers, cybersecurity analysts, and AI ethicists. The most in-demand positions reflect the skills necessary for today’s high-pressure environments.

Geographically, Dublin still commands the highest salaries, but the gap with regional cities like Cork, Galway, and Limerick is narrowing. Hybrid work has enabled specialists to operate outside the Dublin commuter belt while still securing senior roles.

This report serves as a critical reminder for job seekers: while the market is ripe for those looking to change jobs or upskill, expecting significant salary increases may lead to disappointment. As the Irish labor market evolves, staying informed about these trends is vital for both employers and employees.

As we move further into 2026, watch for how these shifts will impact hiring practices and salary negotiations across the board. The demand for specialized skills will likely continue to reshape the landscape of employment in Ireland.