What the Latest CSO Labour Costs Report Means for Employers in Cork and Kerry
Head of Orbitus HR, Jennifer O’Brien on the latest CSO Labour Costs Report
The Central Statistics Office (CSO) has just released its latest Earnings and Labour Costs report (Q1 2025 Final & Q2 2025 Preliminary Estimates), and the findings confirm what many employers in Cork and Kerry already know: labour costs are rising, competition for talent is intensifying, and smaller businesses in particular are feeling the strain.
Wage Pressures Continue to Build
The report shows that average weekly earnings rose by 5.3% year-on-year. For employers across Munster, this reflects the reality of trying to stay competitive in a tightening labour market. Many SMEs in Cork and Kerry are balancing the need to pay fairly with the challenge of rising operating costs, from energy to insurance. Jennifer O’Brien, Head of Human Resources at Orbitus HR, notes:
“Employers are being challenged to offer competitive pay while managing overall cost pressures, particularly in sectors where margins are tight.”
Sector Spotlight: Hospitality, Creative Industries, and Professional Services
The CSO figures show that the Arts, Entertainment & Recreation sector saw wage growth of +11.4%, while Professional & Technical Services rose by +7.2%.
For Cork’s tech and engineering firms, as well as Kerry’s growing tourism and hospitality hubs, this reflects ongoing challenges in recruitment and retention. Jennifer points out:
“For employers in these sectors, it’s no longer just about salary – offering flexibility, purpose-driven work, and meaningful development opportunities is becoming
essential.”
This is particularly true in Cork’s creative industries and Kerry’s tourism-driven economy, where seasonal pressures collide with rising wage expectations.
SMEs Under Pressure
While larger employers may be better placed to absorb wage growth, smaller businesses across Kerry and Cork are feeling the pinch. Hospitality – a cornerstone
of the South-West economy – continues to have the lowest labour costs overall but is still experiencing upward wage pressure.
“Smaller businesses, particularly in lower-margin sectors like hospitality, continue to feel the squeeze. This puts increased importance on non-monetary retention strategies and operational efficiencies,” O’Brien explains.
Vacancy Rates & Talent Shortages
The national job vacancy rate remains at 1.3%, but key sectors are under strain. Public Administration & Defence reported a 4.8% vacancy rate, the highest in the economy. For Cork and Kerry, this mirrors ongoing challenges in healthcare, education, and public services – all vital to regional development.
What Employers in Cork and Kerry Can Do
Looking ahead to 2026, Jennifer O’Brien suggests that employers in the South-West will need to sharpen their strategies:
- Invest in upskilling: developing local internal talent rather than relying solely on external hires.
- Focus on employer branding: showing why your business is a great place to work.
- Adopt agile workforce planning: being proactive about seasonal demand,
- especially in tourism and hospitality.
At Orbitus HR, we work closely with businesses across Cork and Kerry to navigate these challenges – helping employers strike the right balance between
competitiveness and sustainability.
To learn more about how Orbitus HR can support your business, get in touch with our team today.
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