An economic watchdog has cautioned that switching people from other sectors or "significant immigration" of construction workers will not be enough to address the housing shortage in the Republic of Ireland.
Ireland's biggest social, economic, and political problems now involve housing. .
Housing investment in Ireland has reportedly been low for more than ten years, according to the Fiscal Advisory Council.
It calls the lack of available housing "a fundamental challenge" for the Irish economy.
Ireland's economy has largely recovered from the pandemic, and inflation is currently declining after recently reaching a peak.
However, the council issues a warning that the economy is currently running into capacity issues, primarily in the housing sector.
Forecasts for the construction of new homes are only adequate to keep up with the growth in the population, it was stated.
"Understanding the main factors contributing to Ireland's capacity constraints and how they affect the medium-term sustainability of economic growth is crucial.". ".
It forewarned that one of the challenges in solving the issue is a lack of skilled workers.
"Trauma effects.".
The council cites official data that indicates the number of construction workers in 2017 was just over 63,500, down from a peak of 115,550 in 2007.
The peak annual inward migration of 151,100 coincided with the peak level of construction employment.
This indicates that the housing shortage in Ireland is unlikely to be significantly addressed without significant immigration of construction workers over the ensuing years, or a shift of workers into construction from other sectors, the council said.
Due to "a multitude of scarring effects from the sector's collapse in the late 2000s," it was warned that there might be "a limited desire" among employees to transition into the construction industry.
Numerous construction workers lost their jobs and businesses during Ireland's banking and real estate crisis.
The council claims that research indicates that the high emigration of this cohort from 2008 to 2012 is likely the reason why unemployment among previously employed construction workers is at a record low.
A number of initiatives to increase the supply of housing have been announced by Ireland's coalition government.
However, real progress has been slow, which has increased support for Sinn Fein, the main opposition party. external is.