The slowdown in the construction sector accelerated in July, according to the latest data from the Central Statistics Office (CSO). Employment in private firms in the construction industry fell by 2.3 per cent in July 2007 compared to the same month last year.

The monthly employment index decreased from 113.5 in July 2006 to 110.9 in July 2007.

The final figure for June 2007 showed a decrease of 1.2 per cent when compared with June 2006, the CSO said.

The index, which only measures those firms with five or more persons employed, reveals that employment levels fell by 1.3 per cent year on year on a three-month moving average basis in July, according to Dermot O'Leary, chief economist with Goodbody Stockbrokers.

"This is the weakest reading since December 2002 and confirms the moderation in the construction sector, particularly housebuilding," Mr O'Leary said.

"Given that it does not measure the full workforce, we would suspect that it is underestimating the level of job losses in the sector."

Separate figures from the CSO revealed that average weekly earnings for clerical and operative workers in the construction industry rose from €761.97 to €795.97 in the 12 months between June 2006 and June 2007, a rise of 4.5 per cent.

There was an increase in the average hourly rate paid to all grades - from €17.29 to €18.35 - and the number of hours worked per week fell by 1.6 per cent from 44.1 hours to 43.4.

Weekly earnings for adult unskilled workers rose by 5.4 per cent from €739.33 to €779.04 between June 2006 and June 2007.

Skilled operatives saw their weekly earnings rise by 3.1 per cent from €882.65 to €910.39 over the same period.