The construction industry now accounts for one-fifth of economic activity in the State, a survey on the sector published yesterday reveals. Marc Coleman, Economics Editor, reports.
In its latest report, Construction and Housing in Ireland, the Central Statistics Office (CSO) says the sector produced €32 billion worth of output in 2005, two-thirds of which was residential construction, compared to a share of just over half in 2000. Construction activity is now 20 per cent of gross domestic product (GDP), a standard measure of annual economic output.
A survey of construction in 19 European countries finds that the Republic has the highest number of house completions per capita, at 21 houses per 1,000 of the population, compared with an average rate was 5.2. Over 86,000 dwelling units were completed in 2005, compared with 50,000 in 2000 and 20,000 in 1990. Dublin's share has fallen, from 34 per cent in 2000 to 28 per cent in 2004, as more houses are built in the commuter belt.
The Republic also has the highest rate of construction output per head of population. Compared with an average of €2,800 per person, output in the Republic was €7,600. Norway was second at €5,800. Some 77 per cent of Irish households own their own homes, the fifth-highest rate after Hungary, Spain, Slovakia and Norway.
Between 2000 and 2005, average earnings in the sector rose by 51 per cent, from €11.44 per hour to €17.31 per hour. Average hours worked fell from 45.6 hours per week in 2000 to 43.8 hours in 2005. One in eight Irish workers, 12.6 per cent of the workforce, works in the sector, the highest ratio in the EU.
