Slowdown as builders now seek work, not staff
Thursday July 26 2001
The Construction Industry Federation said the sector would be forced to revise employment projections downwards due to "a marked slowdown".
A leading economist said the warning reflected a reduction in both business and consumer spending, and predicted the situation would worsen.
Austin Hughes, chief economist with IIB Bank, said it was now clear the economic slowdown was going to last longer than a few months.
Employment in the construction industry grew from 97,000 in 1995 to 170,000 in 2000, and there had been concerns there would not be enough manpower to meet demand.
It was estimated up to 220,000 construction workers would be needed to meet national requirements, but the social partners will be told today that this should be revised downwards. This is due to a significant slowdown in construction activity in the Midlands, western and southern regions. There is still demand for workers in the Leinster area.
Mr Hughes said the construction industry was a bellweather of the economy and was further evidence of a step-down in growth.
Peter McCabe, CIF's director of business and manpower said: "We don't want to be alarmist but there could be a very serious situation in three to four months time."
He added that the Government needed to move forward urgently projects which had been given the go-ahead in the National Development Plan.
- Samantha McCaughren
