A major drive to attract the over-55s back into employment and a new push to attract skilled immigrants to the State will be recommended by a key Government advisory body, which reports later this month.
It is understood the Second Report of the Expert Group on Future Skills Needs expresses alarm at the fall-off in interest in science subjects among Leaving Certificate pupils and at third level.
The real question now, it says, is whether the Republic will be able to maintain current graduate levels in these areas, let alone recruit new ones to fill the skills gaps in the economy.
The Tanaiste, Ms Harney, and the Minister for Education and Science, Dr Woods, will be presented with the report shortly.
It says the number of Leaving Certificate students taking chemistry has almost halved to 12 per cent of candidates since 1987. In terms of the number of doctoral degrees awarded in science and engineering, the Republic has fallen to tenth in OECD figures, compared to third in 1985.
On research, it warns the new £560 million Foresight project - which involves a new foundation specially set up to fund third-level research - may reduce the number of graduates available for industry, at least in the short term.
Reflecting concerns about a possible shortage of research students in science and technology, it signals that much greater financial incentives and other supports are required to attract graduates into research activities.
At present, research students, who are very attractive to industry, receive about £5,000 per annum.
It also recommends that 1,150 new third-level places should be created in the chemical and biological sector on a continuing basis.
Dr Daniel O'Hare, former president of Dublin City University, is the chairman of the group which compiled the report, which will be published in two weeks' time. Its first report, dealing with the skill needs of the IT industry and published in 1998, was fully adopted by the Government.
This report sees a key role for the over-55s and immigrants in combating skills shortages. The group suggests that employers should actively recruit those over the age of 55. To achieve this, it says the economy will need to adopt radical new approaches to work, with more flexible working times and increased teleworking from home.
The report says FAS and the Construction Industry Federation should redouble their efforts to get qualified people from abroad. It says the IT sector should encourage higher levels of immigration to fill the skills gap.
The report says there is a need for at least 5,000 more skilled craftspeople, particularly electricians, bricklayers, plasterers, painters, carpenters, plumbers and plant fitters. The crisis is so acute that the report suggests that some kind of formal craft qualification should be awarded to experienced unqualified workers.
It says that while the dearth of craftspeople will ease by 2003 - when those currently undergoing apprenticeship qualify - significant shortages in these industries will remain and may increase if economic growth exceeds projections. Industry should explore the possibility of reducing the time taken to qualify as an apprentice.
The group acknowledges the progress made in addressing skill shortages in the IT sector since its first report, but warns the continuing boom in demand for IT workers should be kept under review.
It expects demand for degree-holders and technicians in chemical and biological sciences will continue to grow.