Economic Issues - State of the Construction Industry

Disclaimer: While embodying the best efforts of the investigators this Issue Paper is but an expression of the issues considered most relevant, and neither SACES, the investigators, nor the University of Adelaide can be held responsible for any consequences that ensue from the use of the information in this report. [...] The views expressed in this paper are the views of the author(s), and should not be taken to represent the views of the South Australian Centre for Economic Studies nor the University of Adelaide. [...] Using quarterly data on work done and employment in the South Australian construction sector over the 20 years to the September quarter 2021, it is estimated that a $1 million change in the volume of construction work done leads to a 15.7 person change in employment within the construction sector. [...] Movements in the number of actively trading businesses in the construction sector provides another useful gauge of the health of the construction sector. [...] The downshift in the rate of construction business failures over the past two years is part of a broader trend of reduced business closures during the initial stages of the pandemic.