In a recent report by the Banking and Payments Federation of Ireland (BPFI), urgent recommendations have been made to introduce additional apprenticeship programs and work permits to tackle the pressing shortage of skilled workers in the construction sector. The BPFI has expressed concerns that this shortage could exacerbate the ongoing housing crisis in Ireland.
According to the latest SME Monitor, 60% of Irish firms are currently facing challenges in recruiting machine operators and tradespeople, while 40% of construction companies are struggling to secure an adequate workforce of laborers. The federation has emphasized that these labor shortages and skill gaps pose a significant risk to growth in vital SME sectors, including construction, which plays a pivotal role in the country’s economy. SMEs account for a substantial 80% of employment in this sector.
Brian Hayes, Chief Executive of BPFI, highlighted the buoyant state of Ireland’s economy, with robust economic activity in 2023. Despite the positive economic indicators, labor shortages remain a pressing concern, particularly in the construction sector. As of Q2 2023, employment in Ireland reached its highest recorded levels at over 2.6 million, yet these shortages continue to pose a risk to the country’s growth and prosperity.