The Irish Exporters Association is predicting that the unemployment rate could reach 7% by the end of this year as another 25,000 jobs are lost.
The IEA says the continued downturn in global markets, the difficulty of a stronger euro and higher inflation were now affecting exporters' ability to retain staff.
The association says overcapacity built up during the rapid growth in the 1990s is still present, and it expects a repeat of last year's job losses, but without the same level of job creation.
Chief executive John Whelan said current conditions were like those seen in 1990/91, but with the added problem of higher wage costs.
He said services inflation was running at three or four times that of our trading partners and called on the Taoiseach to set up a wide ranging inflation control task force.
