By Business & Finance 
IDA Ireland’s Labour Market Pulse study highlighted the growing importance of AI along with barriers to its implementation by businesses. It also showed that the hiring rate in Ireland continued to slow towards the end of 2022. The Irish FDI company has partnered with Microsoft and LinkedIn to offer quarterly employment updates using LinkedIn’s labour market insights.
As the economy rebounded from the COVID-19 pandemic, the tech landscape continued its evolution as it contracted and once again redefined its limitless potential with the development of AI.
A return to normality in the labour market signalled the end of the hiring spree tech companies partook in at the onset of the COVID-19 crisis. To compound the job insecurity felt by the tech sector, the advent of machine learning brought into question how much longer certain jobs will exist at all.
This recent study by the IDA Ireland in partnership with Microsoft and LinkedIn shows the rapid slowing of the hiring rate but also contextualises the integration of AI and why it may not be the death knell for countless more workers in the tech sector, and beyond.
The nationwide unemployment rate reportedly stood at 4.4% in December 2022 as the country’s Gross Domestic Product (GDP) grew by 12.2% year-on-year.
Slowing hiring rates
Irish hiring rates continued to slow towards the end of 2022 according to the recent study. Rates were 27% lower in December 2022 then they were in December 2021 and the downward trajectory has continued into 2023.
For January 2023, hiring rates were 27.2% lower than in 2022 as February rates sit 34.7% lower in 2023 compared with the previous year.
The labour market experienced a peak and subsequent trough in hires from the onset of the COVID-19 pandemic to the rebounding of the economy as restrictions eased. Decreasing hiring rates have been attributed to a pivot to more sustainable business practices which are reflected in longer tenures for employees balanced with reduced hiring.
The nationwide unemployment rate reportedly stood at 4.4% in December 2022 as the country’s Gross Domestic Product (GDP) grew by 12.2% year-on-year.
AI Integration
AI, the current zeitgeist of business, was also referenced in the study. Artificial Intelligence is projected to be worth €387.08bn by 2028 as it is adopted across multiple sectors. Its potential has already been demonstrated in health and Enterprise Sofware Solutions.
The World Economic Forum has stated that they expect 97 million jobs involving AI will be created between 2022 and 2025. They have also said that there will be no net job losses but that upskilling will be essential for individuals to secure their futures and find their place in an AI-enabled business landscape.
AI is set to alter business activities and the labour market as obs will be created in the develop and maintain AI systems whilst others will change due to its integration. According to LinkedIn data, AI talent in Ireland grew from to 0.34% to 2.09% between 2016 and 2022.
This reflects increased investment in AI which has led to an overall talent growth in Ireland of 28.5% as global figures increased by 42.1% between 2021 and 2022.
The research has shown that women are underrepresented in AI teams but that the amount of female AI talent is increasing faster than male AI talent. LinkedIn data shows that 1.36% of women in Ireland are considered AI talent in comparison with 2.55% of men.
Gender diversity
The research has shown that women are underrepresented in AI teams but that the amount of female AI talent is increasing faster than male AI talent. LinkedIn data shows that 1.36% of women in Ireland are considered AI talent in comparison with 2.55% of men.
The number of women considered AI talent grew by 40.5% between 2016 and 2022 as the number of men grew by 34.7%. Studies also show that there is a correlation between diversity and high performance.
This trend is set to continue with the pendulum poised to swing towards a more female-dominated sector as enrollment levels for females in relevant 3rd level programmes grew by 61% between 2015 and 2021. Male enrollment figures grew by 28% in the same period.
The growth of AI talent
Measured sectors including Education, Financial Services, Manufacturing, Professional Services and Technology, Information & Media have seen a growth of AI skills since 2016.
Education had the largest number of AI talent in Ireland at 6.36% according to LinkedIn numbers. Professors, Postdoctoral Researchers and Research Assistants were the most common occupations for AI talent in Ireland.
Global LinkedIn stats show that people employed in Technology, Information & Media had the largest amount of AI talent at 6.58% in 2022.
The amount of AI talent does not currently match demand and poor skills availability has been recognised as a key obstacle for AI adoption in businesses across Ireland and the EU.
This, along with Ireland’s culture for a highly-educated workforce, world-renowned education systems and technologically creativity have set it in good stead to fill the hole in the skills gap and become a global leader in AI integration.
Supply and demand
To answer the growing demand for AI skills, Ireland has taken a number of steps to plug the skills gap. Dr Patricia Scanlon was named as Ireland’s first AI ambassador in 2022 with the responsibility of leading the national conversation on AI, emphasising ethical use of the technology and its adoption by businesses.
A National Masters was also introduced along with a digital strategy to be implemented in Irish schools. This will add to the 105 courses in AI and related areas nationwide along with multiple Science Foundation Ireland Centres for Research training which will allow individuals to upskill and stay up-to-date with labour trends.
CeADAR, a national centre for applied AI with backing from IDA Ireland and Enterprise Ireland, is one of thirty EU-based AI digital Innovation Hubs.
This, along with Ireland’s culture for a highly-educated workforce, world-renowned education systems and technologically creativity have set it in good stead to fill the hole in the skills gap and become a global leader in AI integration.
READ MORE
Dublin’s tech contraction: What happened?
Meta CEO, Mark Zuckerberg, announces 10,000 job cuts globally
