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Saturday 28 March 2020

Construction workers remain. Construction work, less so.


The pre-COVID19 picture for the construction industry was strong. Even with the cooling of Australia’s largest markets – NSW and Victoria – employment in the industry was still at record levels, including almost 1.2 million workers, or one out of every 11 workers nationwide.

As the housing market cooled, significant State infrastructure pipelines, plus the beginning of several projects from the Australian government’s own pipeline, were continuing to support both the industry and the broader economy.

The advent of the COVID-19 pandemic – with all the trade and travel restrictions, industry shutdowns and social distancing measures it now entails – will leave many of these workers suddenly idle.

Had these workers started more significantly leaving the construction industry following the housing downturn, it would be the industries that absorbed them that would require extra support to weather the coming storm. The fact that these workers remain in the construction industry – but work pipelines increasingly don’t – presents a golden opportunity for government.

Local, state and federal government have the chance to fast-track a significant number of infrastructure projects, absorbing this newly available labour. Even in Sydney and Melbourne – where, until recently, the Australian government was wary of fast-tracking major projects in competition with massive State pipelines that were already competing for scarce skilled labour – a golden opportunity exists.

Infrastructure projects are generally conducted out in the open, unlike say, apartment buildings. This reduces much of the risk of undermining social distancing measures. It also presents a significant opportunity to mitigate some of the damage that COVID-19 is set to wreak on Australian society and the economy.





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