Housing industry faces 500,000 job losses
The housing industry could lose half a million jobs by the end of the year without government assistance.
Australia’s housing industry is forecast to lose half a million jobs by the end of the year unless the struggling sector gets government assistance during the coronavirus pandemic.
The Housing Industry Association reports 100,000 jobs in the housing industry — from builder to tradesmen to backroom staff — have already been lost and another 400,000 positions will disappear when building projects dry up in September.
Property and construction groups have been clamouring for more help during the pandemic, including calls in The Australian last week to restart migration programs to boost housing projects for international students and other migrants.
HIA chief executive Graham Wolfe told The Australian on Tuesday that even with a boost in migrant numbers, the lack of building projects will mean jobs will go with stimulus.
“The risk is that insufficient support will produce a decade of deflation, depression, and human hardship, is present. This means that of all the concerns facing government right now, debt should not be at the top of the list,” he said.
“JobKeeper plays a very important role in supporting workers directly impacted by industry shutdowns. The building industry has been fortunate to continue operating.
“Many small builders will not be eligible for the program as the downturn will impact the sector most significantly from September 2020 when the majority of projects under construction are completed.”
The 500,000 job losses HIA forecasts would equal a wipe-out of 40 per cent of the current housing sector workforce if it eventuated.
The housing group has also found that the start of new home projects are set to fall by 65,000 in the 2020-21 financial year compared to the year before.
Melbourne small builder Sam Langford-Jones has been forced to step down some of his staff due to the pandemic already, as new home sales and visits to display homes evaporated.
Mr Langford-Jones warned on Tuesday there will be further lay offs across the housing industry unless state and federal government start to cut red tape.
“They need to look at town planning processes, building permits, accessibility to land, and to titling land,” he said.
“The damage is flowing down. The hit was immediate on marketing and sales. It is starting to start to hurt the trades … the worst will come in the coming six months.
“Cutting red tape will mean more work. And the potential of big lay-offs will only then decrease.”
Housing Minister Michael Sukkar said on Tuesday that the government had provided strong assistance, but he was “keeping an eye” on the sector.
“We’ve already put in huge support, whether it be Jobseeker or the wage subsidy for apprentices,” he told Sky News.
“Of course, we’re keeping an eye on it. We’re seeing how it’s tracking.
“Construction — whether it’s residential or other — is a massive employer in this country … we’re some degree in the eye of the storm at the moment.”
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