Businesses shut down, banks foreclosed on homes, and tens of thousands of Irish people would leave the country in search of work as the unemployment rate charged towards 15 per cent.

Unable to find a job, Mr Lenihan, who is from Kilkenny, moved to Australia on a working holiday visa. A lover of Irish sport, he settled in Melbourne so he could join the long-running Garryowen Gaelic hurling club.

Six years later, Mr Lenihan is still here. But as the economy in Ireland recovers, he's among a growing number of Irish people considering moving home. "When I graduated there was nothing at all, but now that's starting to change," says Mr Lenihan, who has an Australian partner and a seven-month-old son.

"Local government and private companies at home are hiring town planners again, so my mother is making me aware of that. Those conversations weren't happening two or three years ago."

The number of Irish backpackers travelling to Australia has reached its lowest point in more than a decade, and applications from temporary skilled workers from the republic have plummeted to pre-global financial crisis levels.

Figures from the Immigration Department show Irish working holiday makers were arriving in droves during the economic turndown, peaking at almost 26,000 in 2011-12, but that figure has dropped steadily since, and fewer than 7000 made the journey last year.

The number of Irish people on skilled working visas has fallen more than 70 per cent over four years from an all-time high of 10,300 to just 3000. Irish migration on permanent family visas also appears to be slowing.

Mary Shevlin planned a 10-month stay when she landed in Sydney nine years ago. But she met her Irish husband Damian here, and her sons, aged 1 and 3, were both born in Melbourne. The family built their "forever home" in Preston in 2013 but lately they've been feeling the distance.

"After much deliberation we sold our house last week and are planning to make the big move early next year," Ms Shevlin said, "which is as exciting as it is scary."

She said they had planned to stay in Australia "because we thought the standard of living was better here, the kids had more opportunities." But when her father-in-law recently passed away, it hit home how isolated they were.

"Being close to family is the biggest drawcard," Ms Shevlin said. "And the cost of living over there makes it possible. Because of the recession, things have got so much cheaper, so for us to sell up and go home, we could be practically mortgage free."

There was an exodus of people leaving Ireland after the economic crash, with Fairfax Media reporting in 2012 that the Perth branch of one of the world's largest recruiters has seen a surge in Irish citizens on temporary visas seeking sponsorship. But recent figures from the Irish government show the tide is now turning, with rising numbers of its citizens returning home.

Ireland's ambassador to Australia, Breandan O Caollai, said the Irish economy was "increasingly improving", citing more jobs and recent figures showing migration into Ireland had now outstripped the number of those leaving for the first time since 2009.

He said the economy would further benefit from young people who had gained valuable experience in Australia. "The job market is improving, there is a need for skilled people again," he said.

But the slump in Irish workers could pose a problem for Australia's hospitality and agriculture industries, which rely heavily on working holiday makers for bar, cafe and fruit picking jobs.

Jordan Brooke-Barnett, spokesman for industry body AUSVEG, said the total number of backpackers had dropped 3 per cent for the past two consecutive years. He said he was "not overly concerned" about fluctuations in workers from specific countries, but acknowledged there had been "a lot of people" leaving Ireland in recent years for economic reasons.

Ciara McManamon, who was employed on a Victorian farm and now works at The Quiet Man Irish Pub in Flemington, left Ireland three years ago and plans to return in May.

The 26-year-old said there was a mix of temporary workers and young families packing up and heading home. "A few years ago there were so many Irish people out here, it was like a home away from home," she said. "But I've noticed a lot of people have gone back."

Ms McManamon's boss, John Boyce, said he currently employed about a dozen Irish workers, which was fewer than in previous years. He believes Irish backpackers are increasingly being drawn to Canada, the UK and other destinations closer to home.

Mr Lenihan, 29, has permanent residency and works in planning for the state government. He said while returning to Ireland was now an option, "we're definitely here for the moment, we love Melbourne."

He also acknowledged the shortage of affordable rental housing in Ireland and the lower wages since the recession. "We're keeping an eye on it," he said. "I think people know going back that they won't have it as good as they do here but the plus is the family; that's the draw."