Northern Ireland’s skills shortage is becoming a critical challenge for employers, making it harder to find and retain the right talent. The region’s labour market is undergoing a rapid change, which is threatening growth, productivity and competitiveness. From factory floors to front desks, businesses in retail, manufacturing, supply chain, hospitality and commercial sectors are struggling to find the right people with the right skills.
At Bluestones Staffing, we see these challenges up close every day. In this blog, we’ve explored where the skills gaps are most acute, what’s driving them, and what recruitment agencies can do to help businesses adapt and thrive.
What the data says about Northern Ireland's skills shortage
According to the Northern Ireland Skills Barometer 2023–2033, the region is facing a long-term mismatch between the supply of skills and what employers need. The report, produced by Ulster University and published by the Department for the Economy (DfE), projects a strong demand for qualifications in areas like STEM, business services and health. It also notes that mid-level technical and vocational skills, especially in manufacturing and services, will remain in high demand.
The DfE’s Skills for a 10x Economy strategy echoes this, highlighting five priority clusters including advanced manufacturing, digital/ICT and health & life sciences. They also acknowledge the need for foundational skills across the economy, particularly in roles that can’t be automated.
Meanwhile, the Open University’s 2025 Business Barometer found that 72% of NI employers say the skills gap is already affecting productivity, with SMEs being the hardest hit.
Sector spotlight: where gaps are hitting hardest
Manufacturing and supply chain
Manufacturing and supply chain roles are facing critical shortages, particularly in positions such as process engineers, CNC machinists, maintenance technicians and logistics managers.
As the sector embraces emerging technologies like automation and AI, the need for hybrid skill sets is growing rapidly. Employers are increasingly looking for candidates who can combine traditional expertise with digital skills to evolve with modern production systems.
However, a significant shortfall of mid-skilled workers is making this transition difficult. Many experienced workers are now reaching retirement age, and there aren’t enough younger candidates joining the workforce to replace them. This talent gap is being fuelled by a decline in uptake of vocational training, limited awareness of career opportunities in manufacturing, and growing competition from other industries that offer more flexibility or digitally focused career paths.
Hospitality and retail
Hospitality and retail businesses across Northern Ireland continue to face intense recruitment pressures. This is a result of post-COVID disruption, Brexit-related labour shortages, and shifting expectations from job seekers. According to Hospitality Ulster, employers are finding it particularly difficult to recruit and retain chefs, supervisors and front-of-house staff. Retail NI echoes this concern, reporting that increased staff turnover and a shrinking candidate pool are leaving many roles unfilled for extended periods.
One of the biggest challenges for hospitality and retail is how they are perceived by younger jobseekers. Many are put off by poor work-life balance, irregular hours and limited opportunities for career growth. Jobseekers now place high value on flexibility, wellbeing and clear development pathways. Many sectors offer hybrid working, making them more appealing. Hospitality and retail can’t easily offer remote options due to their hands-on nature and customer-facing roles. Without action on branding, conditions and growth, these industries risk losing the next generation of talent to more flexible sectors.
Commercial and professional roles
In the commercial and professional services sector, demand remains strong, particularly for roles in administration, finance and law. The Northern Ireland Skills Barometer forecasts sustained growth in these areas over the coming years. However, local employers are facing growing competition from businesses across the UK and the ROI offering remote and hybrid roles. Many SMEs in Northern Ireland struggle to attract and retain talent due to limited flexibility, outdated hiring and digital gaps.
Today’s candidates are motivated by more than salary alone. Flexibility, culture, and purpose now play a central role in career decisions. In commercial sectors, younger professionals expect hybrid working, structured progression, and opportunities for continuous development. They’re drawn to employers who value wellbeing and demonstrate inclusive, forward-thinking values. Businesses that don’t adapt risk losing top talent to more flexible and progressive competitors. With remote working now the norm, candidates have more options and fewer reasons to settle for less. To stay competitive, companies must evolve not only how they work, but how they position themselves to potential hires.
How Bluestones Staffing can help
At Bluestones Staffing, we believe recruitment is more than simply matching candidates to roles. We act as strategic partners, working closely with clients to help bridge the skills gap and build long-term workforce resilience.
Upskilling and reskilling strategy
We help our clients assess the skills within their existing teams, identify gaps, and connect them with relevant training providers or in-house development opportunities. Developing talent from within is often faster, more cost-effective, and leads to stronger long-term retention than hiring externally for every need.
Expanding the talent pool
Many employers unintentionally overlook valuable talent pools such as returners, older workers, disabled individuals and those changing careers. We support clients in accessing these underutilised groups, uncovering candidates with strong transferable skills and real-world experience. These individuals often bring high levels of reliability, adaptability and long-term commitment, qualities that can add real value to any organisation.
Where appropriate, we also advise on introducing remote or hybrid working models to widen the candidate pool. This is especially important in sectors like finance and administration, where flexibility can be a key differentiator in attracting skilled professionals from a broader geographical range.
Hiring for attitude, training for skills
In the face of Northern Ireland’s skills shortage, we encourage clients to focus on cultural fit, soft skills and potential. By identifying candidates with the right mindset and attitude, businesses can invest in structured training to build high-performing teams. Often, a motivated learner grows into a role faster and stays longer than someone with a perfect technical match on paper.
Employer branding and candidate experience
In a competitive hiring landscape, a strong employer reputation is essential. We support clients in enhancing their employer brand, helping them craft clear, compelling messaging, optimise job descriptions, and streamline application processes. These elements play a crucial role in attracting the right candidates and ensuring a positive experience that encourages top talent to stay.
Data-driven recruitment
With access to labour market data, job board analytics and sector trends, we deliver tailored, data-driven recruitment strategies. This evidence-based approach helps us understand where talent is, how to reach it and what attracts the right candidates. In a competitive market, these insights are key to helping our clients hire efficiently and effectively.
Collaboration is key
Northern Ireland’s skills shortage isn’t going away, but it is something we can tackle together. For businesses across Northern Ireland, the key is adaptability, openness to new hiring strategies and a strong recruitment partner who understands the local landscape.
If you’re struggling to find the people you need in manufacturing, retail, hospitality, supply chain or commercial roles, get in touch with us to learn more about how we can support your business.