The training and employment agency FÁS has forecast that the rate of unemployment is set to grow significantly over the next two years.
The agency's latest quarterly commentary predicts that unemployment will grow to 5.5% this year, and as much as 6.6% in 2009.
Last month the economic thinktank, the ESRI, predicted that unemployment would increase this year to over 6% but it would then stabilise.
Today's report from FÁS forecasts that unemployment could rise even further. It says a slowdown in the construction and manufacturing sectors are likely to act as major drags on employment growth.
It says that by the end of 2008 the number of people employed in the construction sector could be 37,000 less than at the industry's peak.
Overall it says employment will grow by 24,000 jobs this year but the proportion of people unemployed will increase to 6.6% in 2009.
The report says that the number of foreign nationals coming here in March fell by almost 50% when compared with last year. But it adds that recent figures suggest that a large number of immigrants recently made redundant are choosing to stay in Ireland.
It says that employment growth in 2007 was powered by the creation of part-time positions and/or individuals declaring themselves to be self-employed.
