There was a fall of 25,000 in the numbers of people employed in Ireland in the 12 months to August this year according to the latest Quarterly National Household Survey from the CSO.
This is the first annual fall in employment recorded by the CSO since 1991.
The figures also show that unemployment increased by 60% during the same period.
It is the first time for 25 years that this combination of a sharp fall in employment as well as a sharp rise in unemployment has been recorded in official figures.
Men are doing particularly poorly with the number of males with jobs down by 32,000 over the year.
Women have been faring better with a gain of 7,000 in employment during the year.
The collapse in construction has been one of the big drivers with the numbers engaged in house building down by 40,000 compared with this time last year.
Other areas of construction expanded a little providing some cushion for builders with a gain of 14,000 jobs on infrastructure and commercial building projects.
Employment in manufacturing is down 9,400, while the contraction in the leisure industry has knocked another 5,400 people out of jobs in hotels and restaurants over the 12-month period.
The overall employment of foreign workers is unchanged from last year.
However, the flow of non-Irish nationals into the country has slowed to just one-sixth of the level of last year.
The figures also show that the overall number of people who can be described as fully unemployed rose by 50% to 160,000 in the 12 months to August this year.
FÁS warns of employment crisis
The State training and employment authority FÁS has warned that the number of people employed in Ireland could fall by more than 100,000 next year.
This would be four times more than the annual fall in employment registered in the Quarterly National Household survey today.
Commenting on the situation, FAS Economist Brian McCormick said that the credit crunch now is beginning to hit employment in the financial sector, while the slowdown in consumer spending has adversely affected job prospects in the retail sector.
FÁS also said that the rate of unemployment could exceed 8.5% next year.
Meanwhile, Taoiseach Brian Cowen said it was obvious there is a very difficult economic situation that is affecting our economy the same as others.
The Taoiseach said the Government was trying to minimise job losses.
Asked about reports of an economic package, Mr Cowen said the Government wanted to accentuate the positives.
