The Tanaiste, Mary Harney, has announced plans to reduce the issuing of work permits to non-EU nationals due to growing unemployment in Ireland.
Last year, 40,000 permits were issued, but Ms Harney is planning significant cuts in that figure over the coming 12 months.
FAS has been instructed not to issue permits in circumstances and localities where there is a sufficient supply of labour with the requisite skills.
Where vacancies do exist, employers will be urged to give preference to EU nationals.
"Our first priority has to be to provide opportunities for our own people," Ms Harney said.