Social welfare line in Dublin City: Bishops have said emigration and rising unemployment are creating "insecurity and even despair amongst some"

According to a report in the Irish Examiner on Monday the managing director of the Ulster Bank Wealth Brian Feighan predicts the continued weakening of the labor market in the short term with the unemployment rate soaring to 14 percent this year.

"The economy also continues to face a number of structural headwinds, most notably from the property correction which, while well-advanced has not yet fully run its course," said Feighan.

"Whatever about underlying budget targets remaining broadly on track, the considerable uncertainty about what the true final cost of recapitalizing the banking sector will ultimately amount to has been weighing heavily on investor sentiment in Irish government bond markets," he said.

Looking on the positive side, Feighan said the exposure Ireland has gotten internationally associated with the recession has Irish investors becoming much more "outward looking when it comes to investment selection."

Referring to a report compiled by the Ulster Bank Wealth, the bank's chief economist Simon Barry, said Ireland's recovery will continue to be rocky.

Said Barry, "Indications of a slowing global economy lately are a troubling development, notably in the U.S. where a series of recent data points have disappointed to the downside.

"At this stage, it is difficult to know whether what is unfolding here is some softening in momentum following an early-cycle snap-back in growth or whether the global recovery is headed for a premature end," he said.

The report also predicts that the U.S. will avoid a "double dip" recession but globally the growth will continue to be moderate.