Fears of 35,000 jobs to go in NZ construction

As new figures continue to emphasise the fall off in house building, there are fears 35,000 jobs could be lost in the construction sector.

Numbers out today from Statistics New Zealand (SNZ) show the seasonally adjusted volume of residential building work put in place in the September quarter was the lowest since June 2002.

Commenting on the data, Goldman Sachs JBWere analyst Shamubeel Eaqub said the outlook for the construction sector was clearly "very weak".

"As activity weakens in the sector the prospect of job losses is intensifying," he said.

He estimated the sector to be over-staffed by about 35,000 workers, more than the 33,000 increase in jobs in the sector during the past five years.

"Given the construction and housing-related sectors (directly through financial services for example and indirectly through retail sales etc) have been such significant contributors to employment growth in recent years, the potential unwind is a source of risk for the economy," he said.

To read the full NZ Herald story click here

Posted: 10 Dec 2008

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