Dutch construction industry to cut 50,000 jobs
One in 10 workers in the Dutch construction industry may lose their jobs as orders decline and the economic crisis worsens, says research organisation.Amsterdam – About 50,000 jobs will be lost over the coming two years as a result of the global economic crisis, predicts the Economic Institute for the Construction Industry (EIB).
This means that one in 10 working in the construction industry will lose their jobs.
The latest forecast, based on its April 2009, is an increase from January when the EIB predicted the loss of 30,000 jobs and a 10 percent drop in construction.
Earlier figures were based on predictions from the Netherlands Bureau of Economic Policy Analysis (CPB) that the Dutch economy would shrink by 0.75 percent in 2009 with some recovery in 2010. The independent research institute has since revised its estimates to a 3.5 percent contraction in the overall economy coupled with a slower recovery.
Research from the EIB also suggests the industry will suffer a EUR 8 billion drop in production. Orders for new homes in February 2009 was 30 percent lower than a year earlier, and commercial orders were also down around 20 percent.
The first round of layoffs are expected to take place in September.
According to the EIB, things will be particularly difficult in the next two years and the first signs of recovery are not expected until 2012.
The EIB is a research bureau for construction industry analysis which performs investigations for market parties and governments as well as pursuing their own research initiatives. The original report can be found here.
Radio Netherlands / Expatica