Construction slump: what to do if you lose building or trades work

How bad is it, and is it ending?

Stats NZ data reported by Waatea News on 31 March 2026 showed construction employment down by more than 19,000 over two years, manufacturing down about 10,000 and Auckland down roughly 21,000 jobs (41,465 fewer people in work nationally). Centrix's managing director said there were 551 fewer construction and building companies at the end of 2025 after many liquidations in 2024 and 2025 (MPA, 13 July 2026).

MPA reported in July 2026 that arrears among remaining construction firms had started to plateau and in some cases ease, while the outlook remained weak. Treat any claim that the slump is over with caution until the next Stats NZ labour data (due in early November 2026) and later releases.

If you have been laid off or told your job is at risk

1. Get your termination in writing and the date of your last day. Keep payslips, time records and job sheets.
2. Check whether you are an employee or a contractor. Many tradies are called contractors but are legally employees. If you are an employee you are entitled to notice, holiday pay and redundancy process, and you can raise a personal grievance within 90 days.
3. Work out what you are owed: final wages, accrued annual holidays, any redundancy clause in your agreement, and unused public holidays or alternative holidays. Use the final-pay tool.
4. Apply to Work and Income straight away. You will face a stand-down of one or two weeks depending on earnings; use the stand-down tool.
5. Email RedeploymentSupport@msd.govt.nz if you work for a company cutting staff, and ask about redeployment support.

If your employer goes into liquidation

Employees can make a preferential claim for wages and holiday pay earned in the four months before liquidation, up to a legal cap, which Employment NZ lists as $31,820 as at 30 September 2024 (check for an update). You file a claim with the liquidator, and payment usually comes at the end of the process, so it can take a long time. Existing personal grievance claims stop unless the High Court or liquidator gives permission.

Tickets, licences and training that keep you hireable

• Site Safe: a Site Safe passport or equivalent health and safety induction is commonly required on commercial sites. Check which cards major contractors accept and whether renewals are due.
• Licensed Building Practitioner (LBP) licence: keep it current. The LBP register is run by MBIE, relicensing fees and skills-maintenance requirements apply, and you must apply before your licence expires to avoid a late fee. Check your date and requirements at lbp.govt.nz. Licensed people are needed to carry out or supervise restricted building work, which is why employers prefer them.
• Forklift, EWP, scaffolding, working at heights, confined space, traffic management (STMS/TTM), and drivers' licence classes: each opens other industries.
• Gas, electrical and plumbing registration (via the Plumbers, Gasfitters and Drainlayers Board and the Electrical Workers Registration Board) allow work in maintenance and utilities. Check your practising licence is current.
• If you are mid-apprenticeship, ask your training provider about transferring to another employer. Do not simply stop.

Where trades work is still found

• Infrastructure and civil: roading, three waters, rail, energy transmission and utilities projects, some of which are still advertised or in progress. Check council and NZTA tender pipelines.
• Maintenance, renovations, insurance repairs and fit-outs, which are less sensitive to new-home consents than residential construction.
• Regional centres with rebuild or investment projects (check the regional guides).
• Australia: recruiters often target NZ trades. Check licensing recognition for the state first.
• Adjacent sectors: manufacturing and joinery, logistics, timber processing, building supplies, security, facilities management.

Work and Income offers redeployment support for people facing redundancy. Its page says you can contact them before your job ends, even if no decisions have been made. Support can include a named contact who helps with your CV and cover letter, looks for jobs or training, connects you with employers and arranges financial support between jobs.

• Email RedeploymentSupport@msd.govt.nz (the address Work and Income lists for redundancy support).
• Call Work and Income on 0800 559 009 to talk about payments such as Jobseeker Support or a Transition to Work Grant.
• Book a free career conversation with the Direct Career Service on 0800 222 733.

Contractors and subbies: protect your position

If you are a sole trader or run a small crew, see the guide on subcontractor retentions and payment claims, and the guide on what to do when your own business fails.