Thousands of jobs set to go in building industry

As many as 15,000 jobs could be lost in the Irish building industry this year, but there will be no significant effect on the property sales boom.

The jobs will go in the wake of a 3% fall in private housing construction and a decline in activity in several property sectors, including an 11% drop in public capital projects and 15% in private investment, a survey by the Davis Langdon PKS quantity surveying company forecast.

Michael Webb, of Davis Langdon PKS, said Ireland's building trade had enjoyed exceptional growth rates over the past seven or eight years, as much as 20% in some cases.

"But this year, we are expecting a very significant volume reduction of around 8%. This has been brought about by Government decisions as part of the overall financial strategy.

"It is not necessarily a bad thing to spend less money on construction, but at a time when we need more roads, hospitals and schools, it is a bad time to stop spending.

"For the first time, construction prices are likely to decline this year. Because there is less work around, builders are going to be more competitive.''