An economic survey of Ireland indicates that many of the jobs that have been created recently are relatively low paid, according to the Economic Outlook for Friends First published today.
The outlook prepared by Jim Power concludes that the Irish economy continues to show solid momentum and most economic indicators are continuing to go up.
However it also concludes that there are many factors which could hamper its performance during 2017.
Mr Power, Chief Economist with Friends First, said: "Prospects for the year ahead are looking better than at the beginning of the year.
"Sterling has stabilised; the labour market is strong; business investment intentions are promising; and real GDP could well expand by 4.3% this year, which is up from a forecast of 3.3% at the beginning of the year.
"However there are many factors which could impinge on this growth not least uncertainty with Brexit, the continued caution of consumers, the increased level of employment not translating to an increased income tax take and the increase in the cost of living and the price of what are necessities for many people."
Mr Power's assessment was that, despite the growth in employment - up by 68,600 or 3.5% in the year to end of March 2017 - the income tax take is "somewhat disappointing".
He said: "The most obvious conclusion is that many of the jobs being created are relatively low paid and following changes to the USC in the past couple of budgets, many of the new employees may not be in the USC net at all or are paying very little tax based on earnings."
He also found that the financial burden on the squeezed middle is still intense.
He said: "House prices are rising strongly, which is putting upward pressure on mortgage repayments.
"In addition, the cost of living is rising quite strongly and is soaking up disposable incomes.
Mr Power said: "All of these increases in the price of what are necessities for many people are putting financial pressure on the personal sector and discretionary spending is still challenged."