Cutting thousands of construction and housebuilding jobs would be the ‘first nail in the coffin’ for the industry, according to construction and rail recruitment specialist One Way.

An analysis by One Way outlined that a further loss of jobs would prove critical for the construction sector. This comes at a time when the National Housing Federation has said any slowdown in housebuilding would result in the loss of nearly 120,000 construction jobs over the next decade. The UK’s construction sector has also slipped into recession for the first time in four years, with many commentators suggesting the industry is in turmoil and that the government must do more to support housebuilding.

According to the National Housing Federation, a slowdown in housebuilding similar to that of the 2008 recession would wipe out more than a third of GDP growth (£142.5 billion) and result in the loss of nearly 120,000 construction jobs by 2026.

"The warning signs are flashing amber - housebuilding may be set for a slowdown - but housing associations have a track record of building through tough times," David Orr, Chief Executive of the National Housing Federation said. "Demand for good quality rented homes remains high."

Figures published today from ONS (Office of National Statistics) also show a slowdown. In Quarter 2 (Apr to June) 2016, output in the construction industry was estimated to have decreased by 1.4% compared with Q2 2015.

“The news that the construction industry has slipped back into recession after four years isn’t particularly optimistic and a loss of jobs on the scale that has been suggested would almost certainly be the first nail in the coffin for the sector,” Paul Payne, Managing Director of One Way, said. “We simply can’t afford to lose any more professionals from both construction and housebuilding and the government needs to do considerably more to support these industries before it’s too late.”

The NHF and the Charted Institute of Housing (CIH) are calling on the Government to back building by housing associations and local authorities to shore up the nation’s economy.

“We all saw the potential impact of job losses in the steel industry and the scale of this for construction would be far greater,” Payne said. “We need more professionals operating in the sector if we want it to recover, not less, and the potential impact of these cuts could be devastating if something isn’t done soon. We’ve been very vocal about how the government, employers and trade bodies need to do more to engage with youngsters and promote greater interest in construction, because at the current rate there will barely be an industry left in a few years’ time. Confidence is the only way to get through this difficult period and we need more investment and more projects to be given the green light. If we take a step back and allow programmes to be put on hold and jobs to be cut it could have a hugely damaging effect on the economy and on thousands of peoples’ lives.”