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PHILLIP LASKER, PRESENTER: Australia's construction industry has suffered a bigger than expected fall in the value of new builds in the June quarter.
Figures released today show construction work worth $30-billion was carried out, down 2.6 per cent on the previous quarter.
It's yet more evidence of a housing crisis and more bad news for construction workers.
Nicole Chettle reports.
NICOLE CHETTLE, REPORTER: Making ends meet is a challenge for Shane Ray - a brick layer with 20 years' experience.
He has three children and his wife works at night to help pay the mortgage.
Shane Ray says each week brings fresh job cuts.
SHANE RAY, BRICKLAYER: They'll put down probably two employees every week for the last three months - laid off. These guys are on wages and are no longer needed because they don't have the work.
NICOLE CHETTLE: The union representing builders says the last interest rate rise was one too many.
DAVID NOONAN, NATIONAL SECRETARY, CFMEU: Interest rates are a very blunt instrument to control inflation in the economy. And they can have the impact of hurting working people.
NICOLE CHETTLE: The Housing Industry Association says construction is slowing across the board - even in the traditional boom areas of south-east Queensland and Perth.
It says the nation will fall well short of its target of 190,000 new homes this financial year.
HARLEY DALE, HOUSING INDUSTRY ASSOCIATION: In one year alone we're going to be 45,000 dwellings short of where we need to be.
NICOLE CHETTLE: The Reserve Bank looks set to cut interest rates when it meets on Tuesday.
But the outlook for the industry remains sluggish.
SHANE RAY: I'd like to hope that maybe by Christmas time it might turn. But I really can't see it.
HARLEY DALE: The second half of 2008 and into 2009 is going to be a softer period for new home building. In terms of a short-term turnaround, the horse has already bolted if you like, regardless of interest rates starting to come down in September of this year.
NICOLE CHETTLE: Harley Dale says things will get worse before they improve.
He says any rate cut will boost consumer confidence but it'll take months to kick-start investment in new homes.
Nicole Chettle, ABC News.
Source: Lateline Business
