The Irish Hiring Challenge: High Costs, Tight Market - why Valencia might be the answer

Ireland’s labour market in 2025 is under pressure. With unemployment hovering around 4% and minimum wage now at €13.50/hour - and soon to rise to €14.15 at the start of 2026 - businesses, especially in customer service, are struggling to fill seats.

The challenge isn’t just cost. It’s competition. Ireland is close to full employment - and has been for some time - and candidates expect flexible hybrid work and career progression. For many companies, especially those scaling or operating in cost-sensitive sectors, hiring good quality candidates is a real struggle.

Why Look Beyond Ireland?

• High wage floor: €13.50/hour translates to over €2,700/month in total employment cost when factoring in PRSI, holiday pay, and overheads. (And build in the 2026 increase, and the numbers look even worse!)

• Talent scarcity: Native English speakers with customer service experience are in short supply, especially outside major cities.  And multi-lingual talent often demands a premium.

• Retention risks: Candidates often leave for faster-moving employers or international remote roles.

• High Cost of Living:  Irish living costs are well documented - the current average rental cost is over €1,500 a month, with costs in the major cities all over €2,000 a month.  Minimum wage is not appealing for those looking for entry level roles.

Why Valencia Could Be the Answer

Valencia, Spain, is emerging as a smart alternative for customer service outsourcing and remote team building. Here’s why:

Lower Employment Costs

• Average customer service salaries range from €1,200–€1,600/month gross, significantly below Irish levels.

• Employer social contributions are lower, and flexible contracts are more common.

Native English & Multilingual Talent

• Valencia is home to a growing expat community, including native English speakers from the UK, Ireland, and North America - many of whom are highly educated with great work experience.

• Universities and international schools produce graduates fluent in Spanish, English, French, German, and Italian.

  
  

Strong Infrastructure & Lifestyle Appeal

• Excellent fibre connectivity and co-working spaces are available across the city at a lower cost than in Ireland and other Northern European countries.

• Lower cost of living makes salaries more competitive - rents are lower, and day to day costs much more reasonable.

• High quality of life supports retention and engagement.

How can you take advantage of the benefits that sourcing in Valencia brings?

• Explore BPO partnerships in Valencia that specialize in multilingual CX.

• Build remote teams with native English speakers based in Spain.

• Use hybrid models: keep strategic roles in Ireland, outsource operational support to Valencia, working with partner organisations.

If you’re struggling to fill customer service roles in Ireland at €13.50/hour, it’s time to rethink your talent strategy. Valencia offers a blend of affordability, fluency, and flexibility that’s hard to ignore.  Talk to us about how we can help you source highly skilled, native English or multi-lingual speakers to fill your sourcing gaps.