90,000 foreign workers will be needed over the next two years to prevent a labour shortage, according to the ESRI.
The think-tank has released a new report ahead of the publication of the Government's Summer Economic Statement later.
It claims the unemployment rate will drop to just 5% in 2019 - meaning thousands of staff will be needed to fill new posts.
Economic growth to remain significant in 2018 and 2019, according to the ESRI's latest forecast #ESRIpublications https://t.co/wUnYEGkvvy pic.twitter.com/fNx8A4rtgo— ESRI Dublin (@ESRIDublin) June 19, 2018
Overall the economy is growing very strongly at the moment.
However, Seamus Coffey from the Irish Fiscal Advisory Council says the Government needs to resist the temptation to overspend in the next Budget.
"There is no need for fiscal stimulance now with the unemployment rate falling, employment increasing. We are begining to see some wage increases across the economy.
- Digital Desk