FÁS has forecast that unemployment could exceed 8% by the end of 2009 - with a further rise in 2010 if there is no significant upturn in the global economy.
In its latest quarterly report, the State training agency says the Irish recession has coincided with a ‘dramatic reversal’ in the fortunes of the Irish labour market, which will worsen in the short-term.
Average annual employment will fall by 3.8% or 80,000 jobs next year.
Senior Economist Brian McCormick found that on average in the first half of this year, wages in many sectors did not keep pace with inflation.
He also predicts a net rise of 27,000 in emigration next year.
Mr McCormick added that, overall, vacancies notified to FÁS have fallen by an average of 24% year on year.
Worst hit are transport (down 50%), Information Technology and construction (both down 43%), and retail sales vacancies (down 26%).
However, the report warns that no sector, including the public sector, is likely to be recession proof.
Mr McCormick said the Border region has fared worst, with redundancies up 84% to date this year.
However, some factors are working in Ireland's favour, such as falling oil prices, interest rates and the euro exchange rate.
However, FÁs says it would take a significant global upturn to ease the pain for the Irish workforce.
