The civil construction industry in South Africa shed around 10 000 jobs over the last 12 months, says FNB chief
economist Cees Bruggemans, with many more expected to follow.

He says employment in the industry peaked 
at around 160 000 people in the middle of 2009. With 10 000 jobs lost, he expects 
another 20% to 25% of jobs to go before employment levels in the civil construction industry start stabilising.

“Our view is that growth in turnover [in the industry] is heavily negative.”

He says the level of employment in the civil construction industry is currently too high for the amount of work available.

He expects 
employment in the industry to stabilise around 100 000 to 120 000.

The FNB quarterly report on the state of the civil construction industry in South Africa, released at the end of June, indicated that 67% of respondents to a survey on the subject 
regarded business conditions unsatisfactory.

The civil industry obtained 88% of its work from the government sector.

With projects related to the 2010 FIFA World Cup drawing to a close and the rescoping of work available from some public corporations, construction activity was declining.

The survey showed that the scarcity of 
new construction work had caused margins to come under pressure, which adversely 
affected the growth in the overall profitability of 
businesses that had participated in the 
survey.

Just under 70% of respondents also 
reported lower profitability compared with
figures for the corresponding quarter a year ago.

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