Taoiseach Bertie Ahern has warned that the slowdown in the construction sector could have serious impact on Ireland's economy.
Mr Ahern was speaking after the Central Statistics Office issued figures showing employment in the construction industry fell by some 10.3 per cent last month compared to January 2007.
According to the CSO, the final figure for December 2007 showed a decrease of 6.3 per cent when compared with December 2006.
The Taoiseach said every 10,000 houses less that are built "knocks one per cent off growth" and this is reflected in the unemployment figures.
"That's the rule of thumb. It also removes a considerable amount of revenue [from the economy] as well," he told reporters before opening the Chase Paymentech European headquarters in Dublin's East Point Business Park.
"This week in the United States, it seems that they are in for serious problems in a huge range of companies. That's having a knock-on effect on the world economy," Mr Ahern added.
"And we won't escape that. What we have to try to do is keep up the growth rates. Employment is still being generated. It's going to be a hard year and we need to keep working hard at it."
Labour Party leader Eamon Gilmore called for urgent Government action to tackle the mounting job losses in the construction sector and to help those who have been laid off.
"What is required is co-ordinated action across a number of Departments and Agencies, focused on ensuring that people coming off construction sites are offered, and can avail of, a range of educational and training opportunities," he said.
Mr Ahern said the new Chase Paymentech offices showed the important role Ireland could play in the finance sector across Europe and further afield.
"I am very pleased to see that Dublin will also act as a hub for Asia/Pacific business," he said. "Ireland's strategic location enables us to form a bridging point between east and west to support 24-hour markets. I hope that many other companies will consider this advantage when making strategic decisions about future location."