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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