Australia: Construction will continue to drag on employment growth – ANZ

Catherine Birch, analyst at ANZ, notes that following a sustained period of strength, Australia’s construction employment declined over the past year, especially so in NSW and Vic.

Key Quotes

“This is in line with a fall in construction work done, particularly in residential building which is more labour intensive than engineering construction.”

“We see further falls in residential investment through to mid-2020. And the impact that will have on employment is not likely to be fully offset by the forecast rises in private sector new non-residential building and engineering construction investment.”

“All of this supports our expectation of weaker employment growth overall and upward pressure on the unemployment rate.”