Irish employment would be 3.4 percent lower if Britain leaves the European Union without a deal than it would be if its neighbour remained in the bloc, a study showed.

Ireland's 2.3-million-strong workforce would create 80,000 fewer jobs over the next 10 years through a combination of job cuts and roles that would otherwise have been created if Britain leaves without any orderly transition for trade, the government-commissioned report said.

Due to the two country's close trading links, the Economic and Social Research Institute's (ESRI) study estimated that even if Britain makes an orderly agreed exit from the EU, employment would still be 1.8% lower than if trade remained as it is now, the equivalent of 45,000 jobs.

The ESRI said gross domestic product would be 2.6% lower than it otherwise would have been in 10 years time with a deal and 5% in a chaotic no deal.