THE construction industry boom is expected to create 9,000 new jobs over the next four years, according to a new report on the sector produced by the Department of the Environment.

The output value of the Irish construction industry is expected to grow by about 13 per cent this year to £5.7 billion, up from an estimated £5.05 billion last year, the Construction Industry Review 95, Outlook 96, report states.

The Minister for the Environment, Mr Howlin said that if this level of expansion was achieved cumulative output in the industry will have grown by almost 40 per cent in the last three years".

About 86,000 people are employed directly in construction, but this number should grow by more than 10 per cent to 95,000 by the year 2000, according to the report.

The boom may have a downside as the report forecasts a potential shortage of skilled workers such as bricklayers, plumbers, electricians and fitters within four years. However, the report's authors argue that any shortage of skilled workers in the Republic may lead to Irish emigrants returning from Europe or the United States to take jobs at home.

The report confirms the current boom in both private and public sector building but notes that the pace of investment is likely to "slow somewhat" this year. The expansion expected this year is equivalent to a 10 per cent increase in volume terms, compared to last year's volume growth of almost 14 per cent.

The rate of growth in residential construction is expected to be about 6 per cent this year as a record 32,000 houses and apartments should be completed by year end. The output of the non residential sector is expected to grow by 23 per cent, due mostly to a buoyant tourism sector (up 69 per cent), and continued recovery in the agricultural and commercial sectors, both of which are expected to expand by about 15 per cent.

The value of construction industry output last year is estimated to have risen by almost 19 per cent to £5.05 billion. In volume terms, the sector grew by 14 per cent compared to the 1994 levels. Unlike previous years when the performance of individual sectors was mixed, all of the major areas made a significant contribution to last year's growth.

Private residential construction was up by almost 12 per cent, boosted in part by an 11 per cent expansion in maintenance and improvement works. The market benefited from historically low mortgage rates, rising disposable incomes, and a competitive lending environment which helped keep transactions at a high level. Total expenditure on social housing increased by 5 per cent, giving a total increase in residential construction of about 11 per cent.

The new private non residential sector grew by almost 31 per cent as activity was buoyant across all sectors. Commercial output grew by 44 per cent while the industrial sector was up 30 per cent. Agricultural construction activity was 21 per cent stronger.

Investment in the productive infrastructure sector, which includes roads, water services and energy, increased by 11.5 per cent last year, while social infrastructure construction in areas such as education, health, and public buildings grew by 11 per cent.

The report contains regional estimates for output which shows that Dublin which has 29.9 per cent of the State's population, accounted for 35 per cent of all construction activity last year. More than £1.78 billion was spent in Dublin, but in other areas, such as the midlands and the south east, the percentage spend was lower than the proportion of population in the region.

The Government's current capital programme, which is backed by funds from the European Union, is a major factor in construction investment, and now accounts for about 35 per cent of total building output, compared to 30 per cent six years ago.

The Construction Industry Federation's (CIF) director of economic affairs, Mr, George Hennessy said it was clear from the figures that the sector is "recovering strongly after a number of bad years". The ClF's own estimate is for 8 per cent growth in volume this year compared to the Government's 10 per cent forecast.

The expansion in construction reflects the fact that the economy is strong and that companies are investing for future growth, according to Mr Hennessy. But he said the report did raise "a few questions" about the regional spread of growth as the midlands, and the southeast had not enjoyed the same level of recovery as other areas.