Davy's Construction Jobs Warning -But Ireland still to be one of the Top EU Economies

In a report on the Irish economy, Davy Stockbrokers says that 35,000 jobs will be lost in the construction sector by the end of 2008. However, it also says the losses will be offset by 15,000 new jobs in building of infrastructure and commercial property developments and it predicts economic growth will remain strong.Davy Stockbrokers reiterated the belief that the housing sector is on the brink of an adjustment, with the number of housing completions likely to fall in the second half of the year. The report says that the number of completions will fall off by 17 per cent in the second half of 2007. But it stressed that a forecast of 80,000 house completions for this year and 65,000 next year is still a soft landing.

Although there will be some redeployment of labour to other parts of the construction industry, it is "inevitable" that there will be job losses, Davy economist Robbie Kelleher said.The numbers of workers employed in housing will fall from around 185,000 to 150,000 by the end of 2008, he said. However, this will be partially offset by increased activity in other sectors of the construction industry, where Davy estimates an additional 17,000 people will be employed over the same period.That would leave a net job loss of around 17,000, or six per cent, between now and the end of 2008.

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