According to a study for union’s the construction industry has lost 89,000 jobs and shrunk by 10% since the Government came to power. Construction output is now at its lowest level since 1998.

In addition, wages for those workers who have managed to survive the cull have shrunk in real terms by over £3,000 a year over the course of this parliament.

The study for the TUC carried out by the National Institute for Economic and Social Research shows that a £30bn investment in infrastructure would boost growth immediately and increase economic output by 0.5% a year on a permanent basis.

It reveals that had construction output remained the same over the past five quarters economic growth would have increased by 1.2%, instead of a meagre 0.4%.

TUC General Secretary Frances O’Grady: “The government’s failure to support our construction industry has been terrible for jobs, growth and wages.

“This research shows what happens to the economy when you cut back on vital state funding and why we need urgent investment in new affordable housing and infrastructure projects.”

Since the election the coalition government has slashed Treasury support for public construction works by over a quarter (27%).

During this period public cash for house building has been cut by 20% and spending on school, hospital and transport building projects cut by 38%.

The fall in public sector construction projects has not been made up by the private sector, the study shows. Private sector funded construction works have declined by 4.5% since the government took office.

Unless the government provides more public funding the construction industry will continue to be a drag on economic growth, says the TUC.

The unions have called for an ambitious programme of affordable house building and investment in infrastructure projects.

The government’s refusal to borrow to invest, and instead wait for private money that isn’t arriving, is preventing projects getting off the ground, says the TUC.