3.5 Increase Labour and Sectoral Capacity
Delivering on the ambition set out in Housing for All will require a vibrant and innovative construction sector that supports the development of its existing workforce, including through lifelong learning, and presents an attractive and sustainable career for those preparing to enter the labour force.
The Building Innovation Report15 undertaken by the Construction Sector Group identifies a series of high impact actions to be undertaken to increase innovation and output in the sector in order to deliver the economic and social infrastructure that this country needs. More than ever, Ireland needs a competitive, dynamic, and sustainable construction sector that can deliver high quality physical infrastructure for all our citizens.
Following the major reversals associated with the financial crisis, the industry experienced a steady and determined improvement between 2014 and 2019. Construction sector employment and investment picked up over this period,
with employment growing from just over 100,000 whole time equivalent workers in 2014, to almost 150,000 at the end of 2019. The Covid pandemic has since intervened and caused major disruption to the sector. A critical
issue for the sector is to seek to re- establish the workforce gains made pre-pandemic to the greatest extent possible, as there are significant time- lags in providing the necessary skills to prospective employees new to the sector. For example, training of a craft apprentice can take up to four years, while architecture courses are five years’ duration, followed by two years in professional practice to achieve professional registration.
To deliver an average of 33,000 houses and apartments (and beyond) will require an expansion of the current
workforce. This will happen through the attraction and retention of those with the necessary pre-existing skills and the provision of new training opportunities for those interested in a career in the construction sector. This will require a plan to support the industry in returning existing workers to full employment and proactive engagement with international labour where supply
is unavailable locally. It will also require further ramp-up in education and training opportunities, including commitment regarding programmes and apprenticeships and delivery of new courses.
The Action Plan on Apprenticeship 2021-25 contains an ambitious commitment to increase apprenticeship registrations to 10,000 per annum, almost double the 2020 intake. There are now 60 different apprenticeship
types (with a further 18 in development) and they extend well beyond the construction sector or traditional craft trades. Working with employers in the construction sector to expand their employment of apprentices will be critical to a medium term, sustainable approach to the future availability of necessary skills.
The 2020 Building Future Skills Report16 sets out Ireland’s built environment skills demand until 2030; 50 percent of the key roles are mapped to apprentice trades. However, it is intended that the forecasts in this report will be revised to take account of two forthcoming studies commissioned by the Expert Group on Future Skills Needs;
• Labour Demand Estimates for Ireland’s National Housing Targets, 2021-2030, and
• Skills to Enable the Low Carbon Economy to 2030.
The forthcoming Labour Demand Estimates for Ireland’s National Housing Targets, 2021-2030 Report estimates that total labour demand from housing construction will need to rise from approximately 40,000 full-time equivalent workers at present, to 67,500 workers by the middle of the decade, to achieve an annual average of 33,000 homes over the decade.
As the backlog of housing output has built up, a further increase, possibly up to 80,000 workers may be necessary. The Report also estimates the labour demand across the key occupations for the Built Environment, from architects
to construction operatives. For example, it is suggested that approximately 2,500 additional carpenters will need to be recruited or trained in total in order to reach the target of 33,000 homes per annum.
The forthcoming report on the Skills to Enable the Low Carbon Economy to 2030 will also identify further workforce requirements in relation to the Climate Action Plan’s retrofit targets and the construction of renewable energy projects.
Building Future Skills forecasts will be revised to take account of the subsequent forecasts to achieve housing targets and the transition to a low carbon economy. Meanwhile education and training output will be aligned with these requirements.
The DFHERIS and its agency, Solas, will deliver an integrated education and training sector response to these skills forecasts, in particular through the forthcoming Solas ‘Strategy for Construction Services’. The DETE will also make any necessary changes in the employment permit system in order to increase the number of construction skilled workers required to expand the supply of housing.
In addition to the scale of labour across the range of activities associated with delivering housing, support services for professionals including insurance, etc., will need to be considered to ensure adequate capacity.
All of the above initiatives to address the supply of skills are predicated on employers and the construction industry generally continuing to review the attractiveness of its career offering to current and prospective employees, promoting careers in the construction sector and partnering with education and training providers to provide upskilling and reskilling through professional bodies, Skillnet Ireland, apprenticeships and further and higher education and training providers.
The above will be complemented by the actions to be delivered to drive economic sustainability and reduce construction costs over the longer term, detailed in Chapter Five, section 5.3.1.
