Some 40 thousand jobs in the construction sector will disappear in the coming two years due to the coronavirus, according to the economic institute for construction EIB. The institute thinks this crisis will hit construction harder than the 2008 economic crisis. EIB expects construction production to shrink by over 15 percent, NOS reports.
Construction production in the Netherlands increased last year, but that growth will stall in 2020 and 2021 as a result of the nitrogen emission problem. The construction of new houses and infrastructure projects will be particularly affected, according to projections published by the economic institute for construction EIB on Wednesday, NU.nl and RTL Nieuws report.
In the third quarter of this year 13,100 housing construction permits were issued, 24 percent less than in the same period last year, according to figures Statistics Netherlands released. This is the third consecutive quarter in which fewer permits were issued than a year earlier.
Up to and including September, a total of 40 thousand construction permits were issued to build new homes. For comparison, throughout all of 2018 a total of 70 thousand housing construction permits were issued.
The Economic Institute for the Building Industry expects that the arrival of refugees in the Netherlands will lead to a boom in the construction industry. The EIB estimates that additional housing to accommodate asylum seekers will account for a turnover of 5 billion euros and 28 thousand labor-years of work for builders.
Converting offices, unused hospitals and care homes into housing can provide millions of euros worth of extra work for the construction and housing sector.In the best-case scenario, the program will help create an extra 1,800 residences a year, which should generate around 140 million euros in extra work, according to Economic Institute for Building Industry (EIB