More than 50 per cent of people using employment services run by State agency FÁS are foreign nationals and these represent 94 nationalities, the Joint Committee on Enterprise and Small Business was told yesterday.

Addressing the committee, FÁS director general Roddy Molloy said figures reflect the changes in the Irish economy, increased migration and the need for foreign workers to fill vacancies.

A key issue facing the organisation in the coming years is upskilling the workforce, particularly those working in low-skill jobs who are more likely to lose their jobs through outsourcing, he said.

"We know from research that employers tend not to invest in the training of lower skilled people and that the lower skilled tend to be the least motivated in terms of demanding new skills," he said.

A total of 60 per cent of those who will make up the workforce in 2020 are already in the workforce today, highlighting the need for continuous, life-long training, he said.

"If they are not continuously upskilled, they will become the unemployed," said Mr Molloy.

The agency's training budget has increased five-fold from €8 million in 2005 to €40 million this year to address the issue, he added.