Construction activity could potentially generate a requirement for 112,000 jobs up to 2020, according to a report commissioned by the Construction Industry Federation (CIF).

The report, carried out by DKM consultants in conjunction with SOLAS, states additional workers will be needed to deliver on the targets set out in the Government's €43 billion Capital Programme.

Director General of the CIF, Tom Parlon said: "The potential prize for delivering on these strategies is huge in terms of economic growth, jobs and recovery in the regions. With a forecast of 9% annual growth on average the construction can become a €20billion industry by 2020. It can potentially employ 213,000 direct employees making it the largest generator of jobs in all communities around the economy. It is forecast to contribute around 10% of GNP to the Irish economy.

"The construction industry is generally in recovery since 2013 but it is still grappling with nearly a decade of underinvestment and is playing catch up with an economy that has expanded strongly in the meantime. This has manifest itself in the acute housing supply shortage and infrastructure deficits across the country.

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"This report sets out the required number of employees and apprentices to sustain desired activity levels as set down by Government policy. We will continue to work with the Government and its agencies such as SOLAS and the Education and Training Boards to deliver skilled employees and apprentices through innovative initiatives. Critical will be getting the message to young people and those who have emigrated that there is a significant number of quality careers across all the trades and functions in construction companies."

DKM Director, Annette Hughes, who authored the report, said: "The construction industry has been through an unprecedented period in its history – with the volume of construction output contracting by almost two-thirds between 2007 and 2012. It lost almost a quarter of firms in the industry in the six years to 2014. Although the industry has been recovery since early 2013, it needs to catch up with an economy that has expanded strongly.

"In 2015 the value of turnover in the construction industry was around €13 billion, representing 6.2 per cent of economic activity (GNP), down from almost one-quarter of the economy at the height of the last boom. There were 136,900 persons directly employed in Q2 2016, 6.8 per cent of the total employed workforce.

"The industry is concerned that as activity ramps up quickly there will be a lag in the necessary skilled workers in the labour market and amongst those coming out of full-time education and training to meet the demand over the medium-term."

(CD/LM)