CEOs anticipate further easing in job growth but overall business sentiment remains solid

Ibec, the group representing Irish businesses, has published its annual CEO sentiment survey, which shows a resilient performance despite external volatility. However, CEO sentiment aligns with broader labour data indicating a cooling market with only 38% of leaders planning to increase their headcount this year, down from 46% last year.

Overall, while businesses are seeing higher demand volumes, this is not necessarily translating into higher profits due to significant cost increases. With 91% of firms having seen costs rise in 2025, 49% plan to increase prices in 2026 as a result with 85% expecting further cost increases throughout this year.

The top three internal priorities for CEOs are productivity improvements (73%), managing labour costs (58%), and maintaining profit margins (56%). Externally, the top three priorities cited by leaders are housing (73%), infrastructure (66%), and the skills gap (51%).

Fergal O’Brien, Executive Director of Lobbying and Influence, said:

"The messaging from CEOs and the business leaders we have engaged with recently is that the outlook remains positive, though the precarious nature of the global trading environment remains a concern.

This research was conducted prior to the Supreme Court judgment and subsequent reaction of the Trump Administration, all of which has to the potential to undermine the framework of the US-EU trade deal and further destabilise the trading environment. However, businesses have adapted well since last April, demonstrating the resilience to trade through the constant uncertainty. Ibec’s global engagement for St Patrick’s week in Washington, D.C. and Brussels presents a renewed opportunity for Irish business to leverage its access and reinforce its position as a transatlantic bridge, highlighting the mutual benefits of open and fair trade for both economies.

Regarding business costs, trends over the last several years show that rising operating costs remain a primary internal concern. High operating costs are no longer viewed as a temporary spike, but rather the "new normal." The convergence of several labour policy changes last year- with more expected this year- means businesses will continue to incur higher costs. This is further exacerbated by Ireland’s energy costs, which remain among the highest in Europe.

Unsurprisingly, housing, infrastructure, and skills availability remain the top external priorities. Alleviating these concerns requires both support and visible progress, such as fully utilising mechanisms like the National Training Fund to enable skills development, as well as advancing the National Development Plan and housing delivery so that tangible indicators of progress are evident.