The Construction Industry Federation (CIF) has warned that up to 10,000 jobs will be lost in the building industry this year as a result the slowdown in economic activity.
The CIF said the slowdown in the IT sector, the foot and mouth crisis and the fallout from the events of September 11th all had a negative impact on private sector investment and private sector construction output during the last year.
In its Annual Review and Outlook, the CIF said: "Employment in construction is following the trend in activity."
It said employment in construction showed a decline in both September and October 2001.
The Federation said: "Concerns about capacity constraints in the construction industry are no longer an issue."
It called on the Government to use the spare capacity to deliver projects promised in the National Development Plan.
"As capacity becomes available in the industry, the CIF believes a clear opportunity is opening up for the Government to deliver the productive and social infrastructure as set out in the National Development Plan," it added.
The CIF also highlighted what it described as a "national crisis" in waste disposal.
It warned: "The lack of adequate waste disposal facilities is now a severe threat to inward investment and is seriously curtailing existing business including construction activity."
"The public seems to be in denial about the seriousness of the situation. There is a clear failure of political leadership at local, regional and national level," it added.