Fáilte Ireland publishes 2025 tourism labour market research

Fáilte Ireland research shows significant strides in recruiting and retaining talent in tourism but progress has plateaued

Fáilte Ireland has today published the findings of its 2025 Tourism Careers Labour Market Research revealing that while the tourism and hospitality sector has made strong progress in rebuilding its workforce since the pandemic, momentum has now plateaued, and further action is needed to futureproof the industry.

Key findings from the research include:

Recruitment and Retention: ‘Considerable’ difficulty hiring managers / supervisors dropped from 55% in 2021 to 29% in 2025. Retention of chefs has improved, with 39% of employers reporting little or no difficulty, up from 27% in 2024.

Employee Sentiment: 86% of workers now see tourism as a long-term career, up from 71% in 2021. 51% cite passion for the job as a key motivator, rising to 72% among chefs.

Pay and Conditions: 62% of workers report that pay conditions in the sector have improved in the last two years. These include both basic pay and remuneration for unsocial hours, such as bank holidays, which have notably recovered since 2024. Better basic pay remains the top factor in attracting and retaining staff.

Perception Gap: Despite the overall improvement in compensation, only 20% of workers give credit to their employers for pay rises. This contrasts with 57% of employers who report having implemented pay increases, highlighting a significant perception gap between employer actions and employee experiences.

Training and Development: Most employers want to support staff development but 45% of small businesses cite lack of resources as a barrier.

Speaking on the findings, Minister for Enterprise, Tourism and Employment Peter Burke TD said:

“This research highlights the collective effort made by Government, Fáilte Ireland and industry to rebuild the tourism workforce post-Covid. The sector appears to have made strides in improving working conditions, career pathways and perceptions. However, we must now focus on sustaining this progress and addressing the challenges that remain to ensure that businesses are in a competitive position to attract and retain the skills needed to futureproof the sector.

From a Government perspective, we are focused on supporting SMEs to reduce the cost of doing business, which will be important in building business competitiveness and enhancing employment conditions. My Department is also working closely with the Department of Further and Higher Education, Research, Innovation and Skills and with key agencies to assist the sector in developing long-term, sustainable, well-paid careers in the tourism industry, and to expand courses in tourism and hospitality.”

While the sector has made significant gains, the research shows that progress has stalled over the past 12 months. Fáilte Ireland has highlighted three areas where employers can focus to reignite momentum: pay, communication and employee development.

Jenny De Saulles, Director of Sector Development at Fáilte Ireland commented:

“This research shows just how far the sector has come since 2021, when 40,000 vacancies and negative perceptions threatened tourism’s recovery. Today, we see a workforce that is stable, passionate and more optimistic about long-term careers in tourism. From the employee perspective, we are seeing improved pay conditions, more positive experiences in the workplace, greater flexibility, better rewards for unsocial hours and career progression. These are all critical factors in building a resilient and competitive sector.

“But we cannot afford to stand still. If the plateau we’re seeing continues, we risk slipping into reaction mode just as other sectors are stepping up their efforts to attract talent and retain talent. To futureproof tourism, we must keep our focus on people. That means investing in skills, communicating clearly and consistently, and prioritising employee development at every level.”

The research was undertaken in partnership with Jobs.ie. Commenting on the research Christopher Paye, Country Director of The Stepstone Group Ireland, with responsibility for Jobs.ie says:

“Jobs.ie is delighted to support Fáilte Ireland with this insightful and valuable research, which shines a light on the progress made and the opportunities that still lie ahead for Ireland’s hospitality and tourism sector. Despite uncertain economic times, recruitment in the sector is robust with almost a quarter of all jobs on Jobs.ie so far this year coming from hospitality employers with high demand for a variety of positions including Chefs de Partie, Accommodation Assistants and Kitchen Porters.

“The competition for talent remains strong, and employers must step up to show jobseekers what makes their business a great place to work. From improved pay and conditions to flexibility, recognition and career progression, these are the elements that attract people in the door and keep them building long-term careers in the sector. To hire the best, employers must also focus on the hiring process itself — communicating clearly with candidates as well as streamlining their application journey. A positive experience can be the difference between securing top talent and losing it to another sector.”