NSW construction companies predict job losses if lockdown is further extended

The NSW construction industry is threatened by the possible extension of the current  two-week lockdown in NSW. It might cause many companies to fold and site workers to lose their jobs. This is a fallout of the delta virus strain spreading towards Southwest and West Sydney especially in the local government areas, which house more than 200,000 construction workers. In spite of the lockdown, there is no drop in community transmission and this has given rise to the possibility of an extension. If extended, the community is looking at another four to eight weeks at home. 

In early 2020, just as the pandemic was setting in, the construction industry was designated to be an essential service, and exempted from lockdown restrictions. Nevertheless construction work was affected due to social distancing mandates and supply chain shutdowns. 2021 saw the Australian Government announce 15 infrastructure led projects worth AUD72 billion (US$49.1 billion), as part of the economic revival. The intent was that it would support more than 60,000 direct and indirect jobs. That said, the spread of the delta variant has disrupted plans once again. 

As construction business is not a work from home type of job, construction companies have already suffered various losses especially in supply chains over the last year and a half. More than a quarter of all business insolvencies in Australia are attributed to the construction industry. What’s worrying is also the mental health of the workers. A national suicide prevention group estimated that workers on building sites were already six times more likely to die from suicide than from a workplace accident. 

The construction companies want to undertake daily COVID-19 rapid antigen tests on building sites as they want to encourage people to come to work. This initiative has not been allowed by the health department although there are talks going on to reach a final decision on this. The smaller construction companies are requesting an exemption from the lockdown itself. Any more economic strife and they will definitely fold. 

Lockdown fatigue is a reality because no matter the measures, the pandemic continues to be a real threat.  Experts at the Public Health and Community Medicine at the University of Sydney are asking people to get vaccinated, follow Covid-19 social distancing norms and stay at home.