The building industry may be forced to slash jobs, Master Builders Australia has claimed.
The organisation has pointed to a survey of industry sentiment, which showed builders believe construction activity and profits will decline over the next six months, and expect to have to reduce employees or subcontractors.
Master Builders chief economist Peter Jones said falling housing and credit demand mean private sector projects have not filled the gap caused by the winding up of government stimulus programs
"The building and construction industry has lost the cushioning effect of government stimulus programs whilst the credit squeeze and other regulatory constraints continue to affect business operating conditions," he said.
Jones commented that conditions are expected to deteriorate across both commercial and residential building, and could lead to job losses in the industry.
"With activity and profits under pressure, it is little surprise that builders have indicated that they will be looking carefully at workforce levels in the period ahead," Jones said.
While the building industry association claimed sentiment among builders remains low, ABS figures for August showed home building rising 11.4%, following on a 1.8% rise in August.
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