Trends in Global Construction Employment and Investment

The construction sector is experiencing a notable increase in employment, with an annual rise of 156,000 employees, representing a 5% growth and totaling 3.3 million workers. This growth follows three years of strong expansion, which has allowed the sector to recover and exceed pre-crisis levels from 2008. However, the overall production value has seen a slight decline, settling at €643 billion, a decrease of 1.7% in real terms compared to 2023, as reported by the Federcostruzioni 2024 Report presented at Saie Bari.

Construction, employment grows even if investment slows down

While employment in construction is rising, certain segments are facing challenges. The building and infrastructure construction sector, which constitutes 51.4% of the overall system, is projected to decline by 5.3%, while the construction materials sector is expected to drop by 2.3%. In contrast, the design and innovative services sector is anticipated to grow by 7.6%, reaching €154.5 billion in 2024.

Construction, employment grows even if investment slows down

Federica Brancaccio, president of Ance, highlighted the sector's resilience, stating that companies have become more financially solid and innovative, largely due to the National Recovery Plan (NRP). However, she emphasized the urgent need to address social emergencies related to housing and hydrogeological instability.

Construction, employment grows even if investment slows down

In the United States, the construction sector has rebounded significantly following the COVID-19 pandemic, recovering to 109% of its pre-pandemic employment levels. The labor market saw a historic recovery, with construction jobs increasing despite the overall downturn experienced during the pandemic. This recovery reflects broader employment trends across various industries, with construction benefiting from increased public spending and urban development initiatives.

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Conversely, in Kenya, the construction sector is facing a contraction of 0.7% in 2024, down from a 3.0% growth in the previous year. The sector's challenges include rising costs, labor shortages, and a decline in loans from commercial banks. Despite these issues, public employment in construction has slightly increased, indicating a shift in workforce dynamics.

Construction growth slows amid rising costs, labour shortages

Certain regions, particularly Texas, Florida, and California, are witnessing a boom in construction projects, driven by public spending and urban development. In these areas, demand for skilled trade workers remains high, with carpenters being the most sought-after trade across nearly 30 states.

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Looking ahead, the construction industry is expected to face ongoing challenges, including rising costs and the need for innovation. The Bank of Korea predicts that while domestic demand will continue to recover, construction investment may remain sluggish due to safety concerns and external economic pressures.

The domestic economy will show a good trend as consumption recovers, but exports will increase uncer. .

The Bank of Korea noted that domestic consumption is improving, but uncertainties in exports, particularly in the semiconductor industry, could impact overall economic growth. In Kenya, Josine Heijmans from dmg events emphasized the importance of innovation and collaboration in driving the next phase of growth for the construction sector.

Construction growth slows amid rising costs, labour shortages

While employment in the construction sector is generally on the rise, discrepancies exist regarding the extent of investment declines. For instance, Ance estimates a 7% drop in investments, primarily due to reduced extraordinary housing maintenance linked to tax rate changes. Additionally, the projected employment growth in Kenya contrasts with the reported contraction in the sector, highlighting the complexities of the construction landscape.

The domestic economy will show a good trend as consumption recovers, but exports will increase uncer. .

“Today, companies are more financially solid and more innovative, thanks above all to the NRP, which has enabled the country to make a qualitative leap forward.” — Federica Brancaccio, President of Ance

Construction, employment grows even if investment slows down

“Kenya’s construction sector is gaining real momentum, fuelled by ambitious construction and infrastructure programs and nationwide housing initiatives under Vision 2030,” — Josine Heijmans, Senior Vice President at dmg events

Construction growth slows amid rising costs, labour shortages