More than one-third of the country's construction firms are expecting to cut their workforce in the coming months according to a Fás/ESRI survey.
New figures reveal that bosses across the industry, retail and service sectors are also predicting a small decline in future employment levels.
The data, revealed in the Fás/ESRI employment and vacancies survey, found the number of construction companies planning on dropping staff is the highest since May 2002.
Figures show that in July, 17 per cent of firms in the private sector reported vacancies compared to 12 per cent in June.
But just over one half of all construction bosses predict they will employ the same number, while less than a third will consider hiring more.
The survey also found a significant increase in economy-wide vacancies in July, with 17 per cent of firms in the private sector reporting posts unfilled. The figure was driven by a rise in jobs left vacant in construction, retail and services.
Positions left unfilled in the construction sector rose for the second consecutive month to 10 per cent, although in the industry sector the figure fell by five points to 13 per cent, the lowest since June 2005.
Firms in the services sector noted an eight-point increase to 25 per cent, while the retail sector experienced an increase in vacancies to 2 per cent. Around 800 companies across the country took part in the survey.
They reported the most difficult-to-fill vacancies in July were: quantity surveyors and managers in construction; engineers, managers, engineers, sales personnel and managers in industry; sales staff and mechanics in retail; and managers, catering personnel and accountants in services.