COVID-19: Australia fears increase in unemployment as construction projects close

Amid the unprecedented outbreak of deadly coronavirus in Australia, the economy is being severely impacting while it is now predicted that more people will be left without work. According to reports, the construction and building industry employs most Australian population but since several projects are either being suspended or put on hold, thousands are people are likely to have no work resulting in the second wave of unemployment. The Federal Labor reportedly estimated on April 23 that the new projects in the residential sector could fall from 160,000 to 100,000 as people are refraining from committing to major projects amid the pandemic. 

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Another survey by the Royal Australian Insitute of Architects of at least 300 architecture practices at the end of March revealed that 89 per cent of projects were cancelled or halted. Even architects have long raised concerns over drastic cancellation of projects and the construction and property sector makes up one in every four jobs, especially in New South Wales and also the eight per cent of GDP. According to reports, the industry holds ‘disproportionately’ larger part in Australia as compared to other economies. 

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 Brian Seidler, the NSW president of the Master Builders Association reportedly said that a survey conducted last week has revealed the crisis due to coronavirus outbreak has started affecting both big and small projects. He added that even though the industry had incorporated physical distancing rules, people are still worried to start projects. However, the lack of projects has further alarmed the authorities for another wave of unemployment as millions of Australians are involved in projects to build houses. However. Large construction sites around the country are still operating but Westfield and Google were the two large companies who suspended projects in NSW. 

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Global death toll of COVID-19 outbreak

Meanwhile, after originating from China’s “wet markets”, the coronavirus has now claimed 184,248 lives worldwide as of April 23. According to the tally by international news agency, the pandemic has now spread to 210 countries and has infected at least 2,638,477 people. Out of the total infections, 721,997 have been recovered but the easily spread virus is continuing to disrupt many lives. Major cities have been put under lockdown in almost all countries and the economy is struggling. 

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Image Source: AP