The Irish workforce has grown by a record 95,000 this year, mainly due to immigration and increased participation by women, new figures show today.
In addition, some 40,000 new jobs are expected to be created in 2006, in a moderation of current growth, a Fás report says. But it also warns there could be a rise in unemployment in the medium term unless competitiveness improves.
In its fourth Review of the Labour Market, Fás warned against an overreliance on immigration to support the economy as it says, it might mask weaknesses in the skills of the domestic workforce in the long term.
The report also notes a reduced but continuing gap in pay rates between men and women. The gap is now below the EU average, having dropped from 19 per cent in 1994 to 14 per cent in 2003. Fás said continued progress would be required to achieve a substantial reduction in that gap by 2010.
Vacancy notifications to the agency this year have exceeded last year's levels and skills and labour shortages are apparent across a range of occupations, some of a short-term nature but others likely to need longer-term solutions. It predicts labour shortages in a number of sectors, including IT, engineering, the health sector and finance.
Fás also proposes a national wage insurance scheme to offset the cost of redundancies due to to globalisation.
The report said slower employment growth "should lead to reduced immigration" as immigrants find it more difficult to find work here. Fás said it should assist in helping immigrants to achieve relevant qualifications here.
It also said that early school leavers who 'sign on' at the age of 18 should be referred immediately to Fás, rather than having to wait six months before intervention.