Up to 20,000 jobs in the Scottish construction industry will have been lost in 2008, according to new figures published by the Scottish Building Federation.

The figure contained in the latest versions of the quarterly Scottish Construction Monitor have raised serious concerns about Scotland's ability to build new projects.

The survey that tracks business confidence amongst Scotland's construction industry leaders showed that confidence has sunk to a rating of -65.2 with 83% of respondents indicating that they are either slightly or much less confident in the prospects facing their business over the next 12 months, compared to last year.

By the end of 2008 the average level of redundancies across companies of all sizes was 8% of the workforce.

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Michael Levack, Chief Executive of the Scottish Building Federation, said: "The results highlight the grave situation facing our industry. Real questions must be asked about Scotland's ability to build the inspirational projects of the future unless urgent steps are taken to keep skilled construction workers employed in the industry."

Mr Levack said the figures verify the estimate that 20,000 fewer people will be working in construction by the end of 2008 than at this time last year.

"The collapse in the housing industry coupled with the slowdown in public sector work has reduced confidence in our sector to a new low. Employers need to know that there will be work in 2009 to allow them to keep staff numbers at the current level," he added.

Calling for action, Mr Levack said: "Scotland's construction receives no specific grants or financial support from Government and yet we continue to recruit more apprentices every year than any other industry. All we ask for is a steady pipeline of work that can maintain capacity in the industry until projects like those announced last week are ready to start in 2012.

"A new strategy is needed and that is why we are calling on John Swinney and the Scottish Government to form a new Construction Taskforce charged with keeping apprentices in the industry and working with public sector bodies to ensure a future for Scotland's 220,000 remaining construction workers."

(GK/JM)