HEA wary of construction downturn

Updated: 23:03, Tuesday, 8 January 2008

The HEA has warned that thousands of young men will face long-term unemployment if there is a serious decline in the building sector.

1 of 1Construction - Workers may face unemployment
Construction - Workers may face unemployment

The Higher Education Authority has warned that thousands of young men will face long-term unemployment if there is a serious decline in the building sector.

Jack O'Connor, SIPTU's General President, has described the Authority's warning as an urgent reminder of the need for a strategic shift in Ireland's training and educational programmes.

While the Construction Industry Federation has accused the Authority of significantly exaggerating the situation.

Tom Boland, Chief Executive of the HEA, today warned that 80,000 young men working in construction, most if not all of whom have not even completed second level, are vulnerable in the event of a decline in the sector.

He says that many were drawn to construction by short-term considerations, and is asking them to return to higher education.

He has also called for a review of the supports available to mature students, and of the Government's approach to life-long learning.

However, Martin Whelan of the Construction Industry Federation said the suggestion that 80,000 jobs are at risk significantly exaggerates the situation.

He said the industry is still growing as shown by recent CSO figures and that numbers employed in the industry held during 2007 on the basis of infrastructural projects.

Austin Hughes, Chief Economist with IIB Bank, said that while volatility is an aspect of construction employment there will be job losses in the sector.

However, he noted that there is a fair bit of infrastructure spending which will offset, to some extent, the slowdown in the housing sector.

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