The Tánaiste tonight responded to the softening labour market by announcing restrictions in the issuing of work permits to persons from outside of the EEA.
She said the rising unemployment rate had promoted the move. "I have instructed FÁS and my officials not to issue permits in circumstances and in localities where there is sufficient supply of labour with the requisite skills," she said.
Ms Harney said that more than 40,000 work permits had been issued last year and this demand was increasing despite the economic downturn.
"Our unemployment rate is still remarkably low and I am confident that we still have a buoyant labour market in Ireland. Nonetheless, the work permit scheme has always been designed to meet demand for labour in circumstances where appropriate skills were not available locally," the Tánaiste added.
"In future, when it is determined on the basis of experience and local labour market analysis that appropriate skills exist in sufficient quantities, the employer will be advised that an application for a Work Permit will not be considered by my Department."
These restrictions would not apply to areas where the Department of Enterprise and FÁS determined specific skills were required.