Work permits for economic migrants have been issued on a "fire brigade basis" because the Republic's economic transformation has been so rapid, the Tβnaiste told the Dβil.
"Nobody had ever anticipated we would get to a situation where we'd have over 60,000 foreign workers in the country," said Ms Harney.
"We had put in place a very liberal regime over the last number of months because we knew the need was there in the economy and we wanted to satisfy that need because of the obvious consequences if we didn't."
She added, however, that the Department of Enterprise, Trade and Employment is currently reviewing economic migration policy "very closely" so it "reflects the labour market realities that are now occurring in the global economy".
There are no signs to date that the live register is increasing but where necessary "we have the capacity to take the pedal off the work permit regime", she stressed.
Ms Harney told Fine Gael TD, Mr John Perry (Sligo-Leitrim) that "the employment of our own people and EEA nationals has to be the priority". Mr Perry had expressed concern about the economic downturn and the potential effect on jobs for Irish citizens.
Ms Harney pointed out that despite the September 11th attacks in the US and the global downturn, the number of applications for the two schemes in operation for economic migrants, remains "very strong".
The two schemes - work permits and working visas - are "vacancy driven" and the Department facilitates the entry of migrant workers in response to requests from employers.
Initial checks with employers showed they were still seeking permits despite the attacks in the US.
"Notwithstanding the closer scrutiny on a sector by sector basis, particularly in tourism, the number of applications remains very strong," she said, although there may be some lag.
Of all applicants, 75 per cent are unskilled, particularly in the work permit scheme.
The two main areas where there is a huge demand for labour are in agriculture and fisheries, where 4,168 permits were granted, and catering, where 6,991 permits were issued.
The total number of work permit applications in the 12 months to September was 28,037, while the number of applications since the beginning of this year is 26,879. Some 34,150 work permits were issued, 707 were refused and 1,128 were withdrawn.
There are foreign workers in low-skilled activity right across the economy and in every county, Ms Harney said. That raised questions for migration policy in the context of an economic downturn, particularly because low-skilled workers are less mobile.
The Tβnaiste pointed out that many of the 60,000 foreign workers did not require visas or work permits because they are either EU citizens or from the European Economic Area (EEA).