Construction industry disputes government claims of labour shortages
The report, issued by Minister for Public Expenditure Jack Chambers, raises concerns that Ireland's construction sector may not have the manpower or productivity needed to meet targets outlined in the recently updated National Development Plan (NDP).
The NDP commits hundreds of billions to infrastructure projects through 2035, with €100 billion earmarked for delivery by 2030.
According to the report, construction employment currently stands at 178,000, which is well below the 236,800 workers employed at the height of the Celtic Tiger in 2007.
It is estimated that around 2,400 to 4,900 construction workers leave Ireland each year.
Meanwhile, of the 39,390 work permits granted to migrants last year, only about 2,000 went to the construction sector.
The report also highlights low productivity as a barrier, stating that Irish construction output is around 30% lower than in other European countries and 20% below its pre-2008 levels.
It warns that if these issues are not addressed, critical infrastructure projects could be delayed or remain incomplete.
However, the CIF has strongly rejected the report's findings.
Paul Sheridan, the federation's director for main contracting and civil engineering, insists that the sector can deliver the projects outlined in the NDP.
He argued that productivity is not the real issue and that systemic challenges—such as delays in planning approvals, unclear funding commitments, and inconsistent project pipelines—are the true barriers.
'There are no capacity constraints on the industry side to deliver,' Sheridan stated. 'The main challenges are planning consents, prioritisation of work, and funding certainty—not a lack of skilled workers or productivity.'
Sheridan also noted that many Irish construction firms are increasingly taking on projects abroad, particularly in Britain and Europe, due to more reliable pipelines and profit margins.
A CIF policy paper published in May echoed these points, emphasising the need for government reform around project approval and investment clarity.
The report identifies 12 obstacles to infrastructure delivery, including the threat of judicial reviews and uncertainty in long-term project planning—factors the CIF argues are more damaging than labour shortages.
Sheridan criticised the government's reliance on certain economic analyses that, in his view, fail to account for the flexible and transitory nature of the construction industry.
He also questioned the accuracy of productivity comparisons, arguing that European benchmarks reflect countries with far larger infrastructure projects than Ireland has undertaken in recent years.
See More: CIF, Jack Chambers, NDP, Paul Sheridan
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