My Department monitors the skills needs of the construction sector in order to guide its strategy around the education and training provision required to equip the workforce with the most relevant and critical skills.
We have commissioned a number of independent reports that have informed this strategy, including the Report on the Analysis of Skills for Residential Construction and Retrofitting (2023-2030) and An Update to the Report on the Analysis of Skills for Residential Construction and Retrofitting. The latter report underlined the importance of developing skills in modern methods of construction (MMC) amid strong evidence of the positive impact of MMC on labour productivity in the sector.
In March this year, my Department published the National Framework for Meeting Priority Construction Workforce Needs. All reports are available on the gov.ie website.
The National Framework for Meeting Priority Construction Workforce Needs identifies 23 key occupations that form the core construction workforce. These include professional roles such as engineers and architects, skilled trades such as electricians and carpenters, and operatives and labour roles.
The report notes that there were approximately 240,500 people employed in these occupations in 2024, with around 133,500 directly in construction. A significant number of these workers are employed outside construction, meaning there is strong competition for these skills across the wider economy.
The report looks at three scenarios regarding the skills required and their expected supply in order to meet housing, infrastructure and climate targets to 2030.
• No Productivity Gains: Assumes no improvement in output per worker, leading to highest labour demand.
• Trend Productivity: Assumes 1.8% annual productivity growth, yielding moderate demand.
• MMC High Productivity Scenario: Assumes an accelerated productivity boost due to widespread adoption of MMC.
Each of the scenarios projects a substantial increase in demand for construction workforce over current levels. By 2030, total demand (comprising employed workers plus unfilled vacancies) is projected at approximately:
• 375,800 workers under No Productivity Gains–an increase of around +135,300 from 2024.
• 352,200 workers under Trend Productivity–about +111,700 compared to 2024.
• 338,900 workers under MMC High Productivity–about +98,400 on the 2024 level.
The skills gaps expected in each scenario by 2030 are outlined below.
• 77,175 estimated shortfall under No Productivity Gains.
• 53,605 estimated shortfall under Trend Productivity.
• 40,295 estimated shortfall under MMC High Productivity.
In the most realistic ‘Trend Productivity’ scenario*, the skills gap is most acute in skilled craft occupations (approximately 61% of the total gap). The figure of 53,605 can be further broken down into:
• 32,932 across apprenticeships.
• 10,587 across occupations that require higher educational qualifications.
• 10,086 across occupations not requiring formal qualifications.
This research will be a valuable tool in considering the converging skills and workforce needs across several critical areas.
The report also presents analysis to support the development of a national framework for meeting priority construction workforce needs. Its recommendations include options to expand apprenticeship and wider education and training capacity, increase adoption of MMC, as well as to leverage inward migration in the short-term.
The report underlines my view that both a whole-of-government and a cross-sectoral response is required to address these challenges, especially in relation to prioritisation and sequencing of projects.
As part of the response to the recommendations, I have written to Ministerial colleagues regarding visa requirements and work permits, and SOLAS and professional bodies (The Royal Institute of the Architects of Ireland, Engineers Ireland, Irish Planning Institute, Society of Chartered Surveyors Ireland) on the recognition processes for foreign applicants.
My Department will continue to work on supporting investment in and reform of the apprenticeship system, promoting careers in construction, and developing new education and training opportunities for the construction sector, and MMC in particular.
*Please see the Excel table at the link below detailing the particular roles needed to meet key targets across housing and infrastructure in the Trend Productivity Scenario.
Skills needs under trend productivity scenario.xlsx