For the whole year 2009, 37,000 jobs may disappear in construction

Prague - In the construction industry in the Czech Republic, up to 37,000 jobs may disappear this year. This is approximately one-tenth of the total number. However, if related sectors are included, this number could rise to as many as 150,000 new unemployed individuals. This was stated today by Václav Matyáš, the president of the Union of Construction Entrepreneurs (SPS).
The domestic construction giant Skanska CS announced today the layoff of 1,200 employees. The company previously employed over 6,800 people. Another large firm, Metrostav, according to its spokesperson František Polák, does not plan such a drastic step for now. “However, if the state does not resume announcing public contracts, we cannot rule that out,” Polák added.
The poor situation of builders was also confirmed by the head of the union. “The situation at companies is not good,” said Matyáš. The construction of new housing projects has completely stopped, and public contracts are not being announced.
The fact that builders are primarily troubled by a lack of contracts was also shown in the latest survey by the CEEC Research project in cooperation with KPMG and Ipsos Tambor. “Companies predict a significantly deeper decline in the entire industry and, consequently, also in their own sales. There is also a visible deterioration in self-confidence among a large portion of the companies,” the researchers stated earlier. Whereas just three months ago companies estimated an annual decline in construction of three percent, the current survey indicates an 11 percent drop.
According to the Czech Statistical Office, construction output in constant prices in the Czech Republic fell year-on-year by 4.8 percent in the first half of the year. Ground construction experienced a decline of up to 11.7 percent. In contrast, engineering construction grew by 16.4 percent.
The number of building permits decreased by 7.7 percent for the first half of the year. The indicative value of building permits was year-on-year down by 4.9 percent from January to June. Just a year ago, both indicators were on the rise.