Up To A Third Of Business Leaders in Ireland May Consider Job Cuts

With storm clouds gathering over even the bullish Irish economy, nearly a third (32%) of firms in Ireland may look to reduce staff numbers, according to a survey of business leaders by professional service firm Aon Ireland.

And half of businesses said that they would at least look to reduce costs given the current environment, with economic slowdown cited as the top risk facing firms, followed by inflation and talent acquisition and retention.

In what will be a concern to the commercial real estate sector, particularly in Dublin, the survey also found that 52% of business leaders believe that rising energy prices will impact their company's ability to grow within the next six months and growing unease over high inflation is also having a negative impact on sentiment.

Aon warned that 53% of survey participants expect low economic growth, while 41% expect the Irish economy to enter recession in the next six months.

Aon's Business Decision Maker Pulse surveyed 228 senior business leaders from companies employing more than 250 employees each across Ireland between October and November of this year.

However, despite the gloomy outlook, Irish business leaders were more optimistic than their global counterparts, with 79% of leaders globally expecting a recession this year, according to a wider survey carried out by Aon.

And a recent update from ratings agency Standard & Poor’s forecast that Ireland will dodge a recession and that economic growth will continue, albeit modestly, next year and accelerate again in 2024. 

"With the increasing likelihood of a global recession, it is clear that economic risk is becoming the driving factor in how Irish leaders make business decisions over the coming months," Aon Ireland chief executive Rachael Ingle said.