Fears for 76,000 jobs in construction industry

ConstructionSkills said the industry was expected to contract by one per cent in 2011, hitting firms already struggling to deal with the effects of a prolonged economic downturn.

The group said 200,000 new workers would be needed in the coming years to complete planned building projects and called on the Government and the industry to prepare for growth through increased productivity.

Spokesman Judy Lowe said: "The next couple of years will be really tough for the industry, but there are signs of longer-term confidence returning to the market. Major infrastructure investment has been announced, particularly in rail and water.

"Businesses need to retain their competitive edge, maybe looking at the Green Deal and the estimated 26 million homes in need of refurbishment."

Meanwhile, the GMB union has claimed the number of job losses threatened at local authorities because of Government spending cuts has topped the 140,000 mark.

The GMB union said 203 councils had now issued official warnings of redundancies after having their budgets slashed by central Government.

The Local Government Association warned last year that 140,000 jobs could be lost, but the GMB said this figure had already been passed.