Recruiters expect the number of job vacancies to rise in the coming months, but a new report warns that access to talent remains the biggest challenge.

The latest Labour Market Monitor from the Employment and Recruitment Federation (ERF), supported by ICON Accounting, found that more than half of recruiters (55%) anticipate an increase in vacancies over the next three months. In contrast, only 12% expect to see a decline.

While demand for new hires remains strong, confidence in the supply of qualified candidates is weaker. The report shows that only 39% of recruiters expect the pool of available candidates to grow.

Hiring activity in July was largely stable, with little overall movement in permanent and contract roles.

Temporary hiring saw more variation, with roughly one in three firms reporting growth in vacancies and placements, while one in five reported a decrease.

The findings come against a backdrop of a strong national economy, with more than 2.8 million people in work and the unemployment rate steady at 4.0%.

Siobhán Kinsella, President of the ERF, said the report shows a "steady market, not slowing." She added, "Employers are still hiring and expect more vacancies in autumn, but talent supply remains the pinch point.

Demand is strong; it’s access to skills that continues to test the market." She called for policies in Budget 2026 to support training and ease cost pressures on businesses.