Over 70% of businesses in Ireland expect to increase salaries this year, while 40% plan to hire more staff, reports RTE, citing data from the latest KPMG Enterprise Barometer. The data showed overall optimism among Irish businesses, with 65% expecting turnover to increase in the next 12 months. However, those surveyed highlighted a number of challenges facing businesses this year, with rising labour costs top of the list. Most (85%) said labour costs will be their most significant hurdle, up from 43% last year. Over half of those surveyed attributed the rising cost of doing business to wage inflation, a significant increase from 22% in 2023.

Meanwhile, 64% of firms are facing problems finding suitable candidates, compared to 60% last year. Alan Bromell, head of private enterprise at KPMG Ireland, said these companies are competing with large multinationals, at a time of full employment. Further data showed 15% of companies believe AI will lead them to reduce their workforce. The findings suggest that the adoption of AI is still at a very early stage, with only 21% of firms currently having a defined AI strategy.