Northern Ireland businesses are experiencing a renewed sense of confidence in recruiting, but below the surface, skills pressures and cost concerns continue to shape the way organisations build their teams.
Earlier in 2025 Allsopp Campbell Rainey was retained by a UK national law firm to provide a legal helpline for thousands of Northern Ireland’s small and medium sized businesses.
In the many calls we have made, we have seen these trends for ourselves when talking to owner-managed businesses. We are having discussions about compliance and strategies around bring in new staff.
And now the latest Moore UK Owner-Managed Business Survey – published last week – reveals that recruitment across the UK has reached its highest pace since before the pandemic. 57% of business owners plan to expand their teams in the coming months.
However, as Moore UK report, the situation for NI firms is more complex and requires closer attention.
Local labour market conditions have improved, yet employers remain cautious due to wage increases, skill shortages, and recent national insurance changes, which all continue to shape recruitment decisions.
Recruiting is easier, but not across all sectors
In 2025, 58% of business owners report recruiting has become easier compared to last year—the highest rate in years. In Northern Ireland, this improvement reflects a gradual return of candidates to sectors like hospitality, retail, and logistics, which were disrupted during and after the pandemic.
In contrast, certain sectors continue to face difficulties. Technology, construction, professional services, and advanced manufacturing employers continue to encounter a constrained labour supply, with experienced candidates scarce and competition among employers remaining intense.
Andrew Campbell, Partner at Allsopp Campbell Rainey, notes:
“In our discussions on the legal helpine, we’re seeing that NI businesses need to plan their recruitment strategies carefully, especially for senior or technically skilled roles.”
NIC changes continue to influence
The Moore UK report highlights that 69% of business owners say recent changes to National Insurance Contributions in the 2024 Budget have had a significant or moderate impact on hiring decisions.
For Northern Irish employers, this is adding another variable to already complex budgeting and workforce planning processes. We have heard many small businesses on the national legal helpline talk about the NIC changes as adding major concern.
Many businesses are responding by adjusting salary structures, delaying permanent recruitment or talking to us about getting draft contracts for fixed-term or project-based resourcing models.
Northern Ireland also faces unique challenges. Many businesses compete not only within NI, but also with employers in Great Britain and the Republic of Ireland. As a result, whilst this can be a very good thing, issues such as pay alignment and cross-border mobility of talent are increasingly critical issues.
Getting the work done
Despite improvements, about one-third of businesses nationwide still face recruitment challenges that directly increase staff’s workloads. Additionally, 22% have had to turn down new work due to these pressures.
For small and mid-sized NI firms, the impact can be particularly significant, especially in regulated professions, skilled trades, or hybrid-working environments.
Employers are therefore taking a more strategic approach to their resourcing, including:
- Broader use of freelancers and contractors, especially for project-based work
- Outsourcing specialist tasks, such as IT, compliance or design
- Investing in technology to reduce long-term reliance on headcount
- Clever loyalty models aimed at retaining key employees while controlling costs, such as LTIPs and EMI share schemes
Neil Allsopp, Partner at Allsopp Campbell Rainey, adds: “Northern Ireland businesses are becoming more intentional in how they deploy people and skills. We’re advising more clients on contracts which reflect hybrid models of recruitment, contractor engagement and outsourcing arrangements.”
What NI employers should do next
To make the most of stabilising labour conditions – while mitigating future risks – NI business owners should consider:
- Updating employment contracts and policies to reflect new hybrid or flexible arrangements
- Reviewing contractor and freelancer agreements to avoid IR35 (or off-payroll working rules) pitfalls and protect commercial interests
- Ensuring recruitment processes are compliant, particularly for regulated sectors
- Putting retention strategies in place for hard-to-fill roles.
Northern Ireland’s labour market is increasingly balanced. However, firms that aim to grow still require clear strategies for recruiting, retaining, and organising teams, especially in areas where specialised expertise is difficult to find.
At Allsopp Campbell Rainey, we and our associated advisers help organisations navigate the contractual complexities of new styles of hiring and contractor arrangements as well as advising when things go wrong. If your business is planning to grow in 2026, we would be happy to guide you through the legal and strategic considerations.
If we aren’t speaking to you on the legal helpline we advise on, contact Andrew Campbell, Neil Allsopp, or anyone at the Allsopp Campbell Rainey team to get started.