Employment authority FÁS says most new jobs next year will be created in the services sector as employment in construction falls.
In its quarterly report on the labour market, FÁS said employment should increase by 60,000, or 3%, this year, But the increase would fall to 23,000 in 2008.
It said demand for service workers had remained strong, with a record number of vacancies in the first half of 2007. It added that job numbers in the sector would rise by 70,000 in the 2007-2008 period.
In contrast, employment in the building sector would drop by 15,000 over the next 18 months.
The report also says that the flow of people from Central Europe has begun to moderate since peaking towards the end of last year. FÁS predicts that net migration will drop from 60,000 this year to 30,000 in 2008, which will help keep the unemployment rate below 5%.
FÁS also says wage growth in most sectors has 'just about' kept pace with inflation.
But the agency said two minimum wage rises meant that the lowest paid had seen more rapid earnings growth.
It pointed out, however, that only 3% of the workforce was employed at the minimum wage.
