Pay rises are key to solving housing shortage

Union officials are disputing claims that rising construction wages could derail Ireland’s housing targets, insisting instead that pay growth is crucial to retaining skilled workers. At the heart of the debate is the mismatch between reported sector-wide wage inflation and the modest increases actually reaching tradespeople.

Unite regional officer James McCabe stressed that recent ESRI estimates of 10 per cent wage rises do not reflect the reality for plumbers, carpenters, and electricians, whose pay rose by just over 3 per cent under the legally binding sectoral employment order in August. Many workers cannot afford the homes they help build, contributing to persistent labour shortages.

Union leaders emphasised that the sector is facing strong competition for skilled labour, with commercial projects drawing workers away from vital housing developments. The government projects an additional 80,000 construction workers will be needed to meet housing targets, underscoring the scale of the workforce challenge.

Susan Fitzgerald, Unite regional secretary, argued that sustained wage increases are critical to prevent the exodus of talent and ensure the sector can meet ambitious housing delivery goals. She also called for the establishment of a public construction company employing direct labour to stabilise the workforce and maintain consistent project output.

While ESRI highlights risks of labour-driven cost inflation, the union maintains that failing to offer fair pay undermines the ability to complete housing projects and threatens long-term sector capacity.

Read the full article on why fair wages could be the real solution to Ireland’s housing crisis.