The number of people employed in construction increased by 5.5 per cent in October compared to the same period last year, according to the Central Statistics Office.
The sector, which is often seen as barometer of economic activity, showed an annual increase in employment of 5 per cent for September.
The monthly employment index increased from 95.3 in October 2003 to 100.5 in October 2004.
The data comes as the Minister for Housing, Mr Noel Ahern announced today that there were 61,000 new homes built in the Republic in the first ten months of this year, a 12.7 per cent increase on last year.