Important industries in New Zealand have fallen into a trough for six years, losing 16,000 jobs in two years!

New Zealand Chinese Pioneer Network Ju’an Comprehensive Report New Zealand’s construction industry activity has dropped to its lowest level in six years, with 16,000 jobs down in the past two years alone, according to a new industry report.

Activity level hits a new low since 2019

Economists Shamubeel Eaqub and Rosie Collins have reported that after deducting price factors and taking into account population growth, per capita output in the construction industry has fallen to its lowest point since 2019.

Data shows that in June 2023, there were a total of 310,000 jobs in the construction industry after seasonal adjustments, but as of June this year, it has decreased to 294,000.

“It is understandable to have unemployment during the recession, but the construction industry is a labor-intensive industry. Once the economy recovers, labor shortages will become a prominent problem.”

Industry declines, corporate defaults surge

The report pointed out that the construction industry has declined significantly in the past six years, with revenue falling and corporate defaults increased significantly.

According to Centrix, the construction industry’s credit default rate has risen by 14% per year, and the company’s clearing rate soars by 48%.

Despite this, the number of enterprises in the industry has not declined significantly, with only about 1,000 declines. Currently, there are still 81,000 construction companies nationwide.

Currently, the construction industry directly employs 294,000 people, and another 247,000 people work in the supply chain.

In 2025, the industry’s annual revenue was $94 billion, but it fell from the previous year.

This affects workers, owners and suppliers. The construction industry relies on a number of suppliers, with annual payments reaching $65 billion.

Reduced training and outflow of labor

The report pointed out that the number of construction-related vocational training has declined in recent years, which includes deterioration in the economic environment, policy changes and an increase in the number of New Zealanders moving to Australia.

“Based on past experience, New Zealand may lose up to 8,000 construction workers to Australia each year.”

In addition, the proportion of workdays lost by the industry due to injuries is 8%, twice the average of all industries in the country.

Although the total number of accidents has decreased, the severity has increased, which means that employees have been off duty longer.

“This has a huge blow to the company, with only the loss of working hours caused by injuries, equivalent to NZD 2.2 billion in wages and profits per year,” the report said.

WorkSafe data shows that between 2019 and 2024, an average of 10 workers died in the construction industry each year, causing serious social and economic costs.

Frank Xu, president of the Chinese Construction Association of New Zealand, acknowledged the industry’s downturn, but said he had seen signs of a recovery in the market.

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