A report has urged the Government to consider drawing up contingency plans to protect jobs from threats facing the economy and to mitigate the impact of any slowdown.
State employment and training agency FÁS launched its review of the Irish labour market this morning.
The organisation says Ireland's economy performed strongly in 2006, with the numbers in employment passing the two million mark for the first time, and 88,000 new jobs created.
FÁS says this continued growth was driven mainly by immigration and increased participation by women. It estimates that employment growth rate will be slightly slower in 2007, but predicts 57,000 jobs will be created next year - mainly in the services sector. It predicts employment growth in the construction sector will moderate.
But the organisation says that despite the positive outlook, the period of high employment and low unemployment may be threatened sooner or later. It says it and the Government together need to assess how such a slowdown would effect employment, particularly in the construction sector.
It also says that in the event of such a slowdown a new flexible approach to wage bargaining may be needed. The organisation also warns that while there is little evidence of displacement of Irish workers by foreigners, it could become an issue for low-skill workers in the event of a slowdown.
It therefore recommends that the new employment rights compliance system agreed in Towards 2016 should continue to be implemented. Launching the document, Enterprise Minister Micheál Martin said last year's growth was a staggering performance, but warned that a number of threats including a potential slowdown in the US economy, meant there was no room for complacency.
