35,000 jobs will be lost in the construction sector over the next 18 months, according to an economic forecast by Davy Stockbrokers.
But the report says the losses will be offset by 15,000 new jobs in building of infrastructure and commerical property developments. It also predicts economic growth will remain strong.
Jitters about the economy mean for the first time in years Irish shares are underperforming European stock markets.
London is up 8% this year, but the Dublin market is down 5%.
Davy Stockbrokers says the main concern is the housing slowdown and it says construction output will fall by 25%.
It thinks the economy will grow by 4.5% this year and 3% in 2008.
That is one of the lowest economic forecasts published recently, and less than the Central Bank's predictions.
Davy says growth in jobs will be 20,000 next year, down from 80,000 in recent years.
However, Ireland's economic growth is still substantially higher than Britain and other countries using the euro.
