More than half of younger workers have switched jobs in the last year

The number of Irish workers changing jobs has risen to its highest level in three years, according to the latest Microsoft Ireland Work Trend Index.

The survey of 650 workers across most sectors found that almost one in four had moved employer in the past year.

This was up from 19pc the previous year and from 14pc in 2022.

These findings show the strength of the labour market, with the unemployment rate currently standing at 4pc.

It means that workers are more confident about securing a new role if they are unhappy with their current job.

Microsoft found that the main reasons for changing employers included personal wellbeing or the mental-health impact of a job, as well as a lack of promotion opportunities, pay rises and an unsatisfactory work-life balance.

The trend was driven by younger workers, according to the report.

More than half of Gen Z workers (born after 1997) had left their job in the past year.

This was also reflected in the millennial generation (born 1981-96), with over a third of these workers also making the decision to move to a new position.

Half of workers surveyed also revealed they are considering switching organisations within their industry in the next 12 months.

Just under half of respondents said they were hoping to make extra income from their own business, or through a “side hustle” in the coming year.

A number of workers highlighted some of the disadvantages associated with hybrid working.

The number of workers feeling isolated, demotivated and out of touch as a result of remote working increased by 5pc year-on-year.

About 86pc of younger millennials stated that they found at least one aspect of hybrid working challenging, the Microsoft report says.

Workers in Ireland are less concerned than elsewhere about the impact AI will have on their roles. Just under 20pc said they were worried about AI, far lower than the survey’s global average of 45pc.

However, AI’s adoption rate of 29pc in Ireland also fell well below the global average of 75pc, which suggests a “lack of access” according to Microsoft.

“For the last three years, workers are saying they are overwhelmed – impacted by poor work-life balance, and for some, a sense of disconnect through hybrid working,” Microsoft Ireland chief operating officer Ronan Geraghty said.

“This draws a parallel with the increasingly transient nature of our workforce and now an emerging trend of many seeking additional ways of earning income.”

Get ahead of the day with the morning headlines at 7.30am and Fionnán Sheahan's exclusive take on the day's news every afternoon, with our free daily newsletter.