Labour Shortages Threaten Ireland's Housing and Infrastructure Targets

Ireland has set ambitious housing and infrastructure targets for the coming years, but a shortage of skilled construction labour is putting those goals at risk. Construction firms across the country report chronic difficulty in finding workers – in fact, 73% of Irish construction companies say access to skilled labour is their number one challenge. This hiring crunch raises serious concerns about whether Ireland can deliver the new homes, roads, and retrofits promised in national development plans.

Soaring Housing Demand vs. Limited Workforce

The demand for new housing in Ireland is at an all-time high. The government's Housing for All plan recently raised its goal to about 50,500 new homes per year from 2025 through 2030. For context, there were only around 30,300 new dwellings completed in 2024 – barely half of what's needed annually going forward.

On top of this, Ireland aims to retrofit tens of thousands of homes each year to improve energy efficiency. Meeting these housing and climate targets would require a major expansion of the construction workforce.

One government study estimated about 67,500 construction workers are needed to build 33,000 homes per year; if the goal is 50,000+ homes annually, the labour requirement will far exceed that. In fact, experts warn that Ireland may need to reach near-record construction employment levels to hit its targets.

The latest skills demand report suggests the sector's workforce would have to grow to roughly 217,000 people – approaching Celtic Tiger era peaks – in order to deliver the planned housing and retrofitting projects. Similarly, the Irish Fiscal Advisory Council projected in late 2024 that almost 80,000 additional construction workers may be required to eliminate Ireland's housing and infrastructure shortfalls (mainly to build new housing and retrofit homes).

Simply put, there is a serious gap between the labour capacity and the building output that Ireland's economy now needs.

Widespread Hiring Challenges in Construction

These labour shortages aren't just theoretical – they are being felt on the ground by businesses of all sizes. Roughly 63% of construction companies report that they are struggling to recruit the talent they need. A Construction Industry Federation survey in 2024 found that 73% of firms ranked the lack of skilled workers as their number-one business challenge.

The pain points span a range of roles:

• 41% of contractors say fire safety and health & safety officers are among the hardest positions to fill
• 32% struggle to hire qualified engineers
• 31% are having difficulty finding skilled bricklayers and carpenters

Ireland's construction workforce is also contending with a generational pipeline problem. One in three construction companies believes young trade talent is actually emigrating from Ireland, leaving a void in the domestic labour pool. Additionally, 25% of firms feel that construction is perceived as a less attractive career than other industries – an image issue that makes it tougher to lure new entrants.

All of these factors contribute to a widespread skills gap: 43% of companies report they cannot find people with the specific skills required for their projects. From electricians to heavy machine operators, the shortage of qualified workers is a common thread across the industry.

Impact on Housing Projects and National Goals

A constrained labour supply is already slowing down progress on Ireland's housing and infrastructure plans. Many in the industry are doubtful that current targets can be met under these conditions – only 20% of construction professionals believe the country's housing goals are achievable with the workforce on hand.

Surveys show 80% of construction professionals are concerned about the sector's ability to meet Ireland's housing output target (previously 33,000 homes per year by 2030). In the area of climate retrofitting, 54% of professionals say that a lack of skilled people is a major obstacle to meeting the National Retrofit Plan's objectives.

In short, labour shortages are directly undermining key national initiatives. The practical fallout is that projects can be delayed or scaled back due to insufficient staff. Developers and contractors may have to slow the pace of construction, which could widen the gap between housing supply and demand.

Some companies are already encountering situations where they must postpone or cancel work – 81% of construction professionals reported instances of builders stalling one-off projects because of current market conditions (including labour and cost challenges).

Even when projects do proceed, the tight labour market is driving up costs: 67% of construction companies experienced a year-on-year increase in labour costs recently, as competition for scarce skilled workers pushes wages higher. These rising costs and staffing shortfalls can strain budgets for public infrastructure as well, meaning roads, hospitals, and energy projects face slowdowns alongside housing developments.

The labour gap truly spans housing and broader infrastructure, threatening to hamper Ireland's overall development goals if not addressed.

Modernizing Hiring and Training Practices

To close this workforce gap, both industry and government are recognizing the need for new solutions. Traditional approaches alone – like waiting for more apprentices to qualify – won't be enough.

An updated government report in late 2024 recommended using "all avenues" to recruit workers, including ramping up apprenticeships and skills conversion courses, running promotional campaigns to attract people into construction, bringing in professionals from abroad, and formally recognizing on-the-job experience in hiring.

In parallel, the industry is looking at productivity boosts: modern methods of construction (MMC) such as off-site prefabrication and modular building can improve efficiency. If widely adopted, these methods could reduce the total number of workers needed – one analysis found that increasing construction productivity by 24% through MMC would cut the required additional workforce by about 10,000 people.

Another key avenue is technology adoption, including how companies find and manage talent. There is plenty of room for improvement here – 60% of construction companies say they are not planning to invest in modern technology for their business, a statistic that highlights a lag in digital transformation.

Embracing technology could be a game-changer for recruitment and project delivery. For instance, many firms still rely on word-of-mouth and paper CVs to hire tradespeople, which can be slow and limited in reach. By contrast, using digital recruitment platforms can significantly speed up the hiring process and widen the talent pool.

With the right online tools, companies can tap into a broader network of skilled workers (including those who might be based abroad or in other regions) and verify credentials more efficiently. In fact, leveraging a construction-focused hiring platform can reduce time-to-hire from weeks to days by streamlining access to a pool of vetted professionals.

These platforms also help reduce hiring risks through multi-method verification of skills and certifications, giving employers more confidence when bringing in new workers.

By modernizing their hiring practices, construction businesses have an opportunity to mitigate the labour shortage's impact. Embracing digital tools – from project management software to online talent marketplaces – will help make the most of the limited workforce available. Every efficiency gain in hiring or productivity is valuable when skilled hands are in short supply.

Ultimately, closing Ireland's construction labour gap will require a combination of strategies: training more people in trades, attracting talent from wherever it's available, and innovating the way the industry operates and recruits. By taking these steps, Ireland can better align its workforce capacity with its housing and infrastructure ambitions.

Looking Forward

Construction companies that modernize their approach will be best positioned to thrive despite the labour shortage. Platforms like Nixerly offer a practical way to connect with verified skilled tradespeople faster and more reliably.

To keep your projects on schedule and support Ireland's development goals, consider exploring Nixerly's digital hiring tools – an investment in smarter recruitment that can help turn Ireland's housing and infrastructure targets into reality.