The Central Bank is expecting 160,000 jobs to be created by 2023 as the economy recovers from the pandemic.
Domestic activity is due to reach pre-pandemic levels by the end of the year with growth of over 5% - excluding multinationals.
The unemployment rate is forecast to fall to around 7% in 2022 although some sectors will take longer to recover than others.
Mark Cassidy from the Central Bank says they expect a steady drop in the number of people out of work over the coming years.
"The average unemployment rate in 2023 for example we're forecasting at around 152,000, which is only around 30,000 more unemployed compared to the pre-pandemic situation.
"That equates to an unemployment rate of just under 6% at the end of that."
