The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
45
print
Print
OfficeAna NarvaezThu 23 Apr 20

Construction Sector Faces Jobs Crisis

2fb370d5-a502-47f4-a4f5-63bf6a526782

Job losses in the construction and building sectors will be severe if the government doesn’t intervene, opposition leader Anthony Albanese said on Thursday.

The latest ABS data recorded a 5.3 per cent fall in construction industry jobs over the last six weeks, as job losses nationwide surpass the 800,000-mark.

Construction industry body Master Builders has warned that the worst is yet to come, with future work falling by up to 40 per cent—a figure cited by the opposition leader.

Master Builders reported major losses from its 32,000-strong membership body. A survey conducted by the group showed respondents had, on average, lost 40 per cent of forward-work on their books.

Housing starts are expected to dip below 100,000 in coming quarters—nearly halving from the 174,000 recorded in 2019 and falling to levels last seen in the 1960s.

UBS analysts said there has not been enough policy support directly aimed at housing to offset the expected declines.

“If [house] price falls do become very significant and potentially a macro-stability risk, we would expect further government support,” UBS analyst George Tharenou said.

It appears the federal opposition has heeded the call of unlikely bedfellows the Master Builders and the CFMEU for further construction industry stimulus.

Related: Biggest Contraction Since the 1930s: RBA

▲ Anthony Albanese, opposition housing minister Jason Clare speak with Master Builders and ACTU representatives.


Opposition housing minister Jason Clare said the construction pipeline for new work is drying up.

“Everyone we’re talking to in the housing game are telling us the same thing, [that] future orders have gone off a cliff,” Clare said in a press conference on Thursday.

“And it will mean that hundreds of thousands of Australian tradies who work in the housing industry could lose their job.”

Moody’s analysts said that revenue for construction companies would likely decline in 2020 as global construction activity turned negative for the first time since 2017.

“We also expect continued delays in large infrastructure projects given supply chain disruptions and constraints on mobilising personnel at construction sites,” Moody’s analysts said.

Albanese said that the government and the national cabinet needs to invest in social housing and incentivise new builds and apprenticeships.

The jobs and wages data released by the ABS show the amount of jobs recorded by the Australian Taxation Office payroll system fell by 6 per cent between 14 March and 4 April.

Commonwealth Bank economist Gareth Aird said that the true deterioration in the Australian labour market is not adequately reflected in the reported ABS figures.

“Our forecast is for total employment to fall by around 700,000 over the June quarter,” Aird said.

“But we believe that there could be as many as one million people who will be classified as employed, but won’t be working any hours.”

The single-touch payroll system is used by 99 per cent of large employers—those with more than 20 employees—and 71 per cent of small employers.

IndustrialAustraliaConstructionFinancePolicyReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Azure’s Trent Keirnan on Playing the Long Game

Taryn Paris
5 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
Forme's James Place on James Street, Fortitude Valley Brisbane
Exclusive

Forme Pushes the Boundaries on James Street Precinct

Renee McKeown
4 Min
Exclusive

Invicta House Rebirth Proves Recipe for Heritage Success

Leon Della Bosca
7 Min
Exclusive

Freecity’s $300m PBSA to Prove Worth of Modular at Scale

Leon Della Bosca
7 Min
View All >
Sirona Urban Cottesloe approved double towers
Development

Sirona Urban Greenlit for $200m Cottesloe Development

Leon Della Bosca
134-136 Botany Road HERO
Office

Six-Storey Scheme Proposed for Booming Botany Road

Leon Della Bosca
A rendering of Third.i's masterplanned community Charmhaven on the Central Coast of NSW.
Residential

Thirdi Plans $1.6bn Central Coast Housing Community

Marisa Wikramanayake
The plans for a 2000-home masterplanned community would include a sweetener for the NSW Government…
LATEST
Sirona Urban Cottesloe approved double towers
Development

Sirona Urban Greenlit for $200m Cottesloe Development

Leon Della Bosca
3 Min
134-136 Botany Road HERO
Office

Six-Storey Scheme Proposed for Booming Botany Road

Leon Della Bosca
3 Min
A rendering of Third.i's masterplanned community Charmhaven on the Central Coast of NSW.
Residential

Thirdi Plans $1.6bn Central Coast Housing Community

Marisa Wikramanayake
2 Min
Office

No Hail Mary Required for Brisbane Place Gamechanger

Taryn Paris
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/construction-sector-coronavirus-jobs