The Government should invest £130 million (€165 million) in Information Technology (IT) education in the years to 2006, an advisory group on labour development said yesterday.
Citing a likely shortage of 3,300 workers qualified to take jobs in the sector in that period, the group said the investment should be made even if an economic "glitch" led to significant job cuts in the sector.
Such labour would still be required once the fortunes of the IT industry reversed after a downturn, it added. The demand would occur despite an increase of 5,950 in the supply of labour in the IT sector.
In a statement welcoming the conclusions of the Expert Group on Future Skills Needs, the Minister for Education and Science, Dr Woods, said he was confident that the Government's response would be "very positive".
The group also said an additional 50,000 construction workers - professionals and otherwise - were required. It said a skills gap of 26,400 was likely to emerge in the sector, where demand has increased due to infrastructure projects in the National Development Plan.
Workers would be encouraged to come to the Republic from South Africa, Australia and New Zealand.
However, the assumption on needs in the construction sector was challenged by the Construction Industry Federation which said the figures needed to be adjusted downward. Citing risk of a slowdown in the sector, its manpower director, Mr Peter McCabe, said: "If we're taking 50,000 people on, we don't want them to be laid off again."
Chaired by the former president of Dublin City University, Dr Danny O'Hare, the expert group advises the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, and Dr Woods on trends in the market for labour.
Despite a slowdown in economic growth, the group cited forecasts which said unemployment would fall to 3.5 per cent this year from 3.9 per cent in 2000.
It said support to foster greater participation by women in the workforce was required, as well as initiatives to "induce" people aged over 55 years to join or re-enter the labour force. This would be required because the cohort of people aged 17 and 18 was diminishing.
The administrative system for processing applications for work visas and permits for immigrants should also be enhanced, it said, adding that services aimed at reducing unemployment when workers change jobs also needed improvement.
On its major demand for a £130 million investment in IT, the group said this was required to fund part-time, "upskilling" and post-graduate programmes at third level colleges, and initiatives to enhance course completion rates.
