French construction to shed 35,000 jobs in 2012: federation

29th November 2011, Comments 0 comments

The French construction industry is set to shed 35,000 jobs next year because of the European economic crisis and government austerity measures, the French Building Federation (FFB) warned on Tuesday.

The job losses will reverse gains made this year as the industry recovered with 9,000 jobs created after shedding 20,000 jobs in 2010, FFB head Didier Ridoret told journalists.

"The eurozone public debt crisis and budgetary readjustment policies have shattered the economic recovery movement that had brought... a bright spell to our markets," Ridoret said.

The FFB represents 57,000 companies in the construction sector.

Ridoret said the federation expected overall activity in the construction sector to fall 1.9 percent in 2012, after forecast growth of 1.2 percent this year.

New residential construction is expected to drop by 2.8 percent, new non-residential building is to fall by 1.0 percent and maintenance and renovation works are to drop 1.7 percent, he said.

The French construction sector was worth 123 billion euros ($165 billion) in 2010 and employed 1.25 million people.

France has lowered its economic growth forecast from 1.75 percent to 1.0 percent for next year amid expectations the debt crisis will further dent the eurozone's economic prospects.

In a bid to maintain its cherished triple-A credit rating, France this month unveiled budget cuts and tax hikes aimed at saving 65 billion euros by 2016.

© 2011 AFP

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