Up to 55,000 jobs could be lost in the construction industry between now and the end of next year unless action is taken by the Government, according to the Construction Industry Federation's (CIF).
The estimate comes in a CIF submission to Government as part of its participation in the current round of social partnership talks.
In the document, the CIF says the economic environment in which the industry operates deteriorated markedly last year. Annual output from the sector, which was worth €38 billion or 24% of GNP in 2007, could fall to as low as €14 billion by the end of next year, unless stimulus packages are put in place, the CIF says.
The CIF claims the rapid downturn will have serious consequences for direct and indirect employment in the industry. Direct employment, it predicts, has fallen from 255,000 in the last quarter of last year to an estimated 190,000 now, and could fall further to 135,000 by the end of next year.
The body says wage rates in the industry must be reduced by at least 10% and a pay freeze must begin. It is also calling on Government to take steps to protect jobs and boost activity.
It says the current housing market provides an opportunity for Government to acquire up to 10,000 additional houses for social housing purposes at knock-down levels.
It is also calling for fresh incentives to assist first time buyers, and a scheme to encourage home owners to retro-fit their homes with insulation. It also suggests commercial property stamp duty rates be cut from 6% to 4%. It also calls on the Government to continue investing in public capital projects.
Separate figures from GeoDirectory show that the number of new buildings recorded last year dropped by 56% from 2007 to 42,683.
GeoDirectory was set up by An Post and Ordnance Survey Ireland to manage a database of commercial and residential buildings. Residential buildings dropped by 58% to 37,968, while commercial development fell by 16%.
