The construction industry’s global employment boom

The towering skyscrapers, winding highways, and cosy communities we inhabit wouldn't exist without the tireless efforts of one of the world's largest industries - construction. But it's not just the physical structures that the construction industry brings to life - it also breathes life into millions of careers around the globe, writes John Ridgeway.

In 2021, the global construction industry employed an estimated 174 million people, firmly securing its position as the world's second-largest employer, right behind agriculture. This staggering figure highlights the sheer scale and economic significance of this vital sector, which not only shapes our environment but also empowers individuals and communities through job creation and economic growth.

Asia Pacific: A Construction Colossus Rises

Undisputedly, the Asia Pacific region reigns supreme in construction employment, accounting for nearly half the world's construction workforce. China, the undisputed leader, boasts over 50 million construction workers, a figure staggering in its scale. India follows closely with over 45 million, while Vietnam, Indonesia, and Thailand contribute significantly to the region's dominance.

Source: Global Construction Outlook 2023 (GlobalData)

Europe: Navigating Shifting Sands

While Europe maintains a robust construction sector, its employment landscape reveals nuanced regional variations. Western Europe grapples with an aging workforce and slowing growth, with countries like Germany experiencing slight declines. On the other hand, Central and Eastern Europe exhibit stronger growth, fuelled by infrastructure investments and economic resurgence. Poland, for instance, boasts a thriving construction sector with over 2 million workers.

Source: Euroconstruct Construction Market Forecasts 2023-2030

North America: A Patchwork of Opportunities and Challenges

The North American construction scene paints a complex picture. The United States, with its vast territory and diverse economic engines, sees regional disparity. While booming areas like Texas and Florida witness employment surges, some Rust Belt states struggle with stagnation. Canada, however, enjoys a more uniform spread of growth, with infrastructure projects boosting construction jobs across the country.

Source: Dodge Data & Analytics Construction Outlook 2024

Latin America: Unearthing Potential Amidst Turbulence

Latin America presents a story of resilience and adaptation. Despite political and economic volatility, the region's construction workforce remains sizeable, exceeding 17 million. Brazil, the economic powerhouse, holds the lead with over 5 million workers, while Mexico and Colombia also contribute significantly. However, uncertainties surrounding inflation and government policies cast shadows on future growth.

Source: Inter-American Development Bank Economic and Social Development Report 2023

Africa: A Continent Poised for Progress

Africa, the world's second-most populous continent, holds immense potential for the construction industry. A burgeoning urban population and increasing investments in infrastructure are driving demand for skilled workers. Nigeria, with its ambitious development plans, spearheads the region's construction boom, while East African countries like Kenya and Ethiopia also exhibit promising growth.

Source: African Development Bank African Economic Outlook 2023

In spite of such progress, as we look into the crystal ball of the future, several key trends emerge, particularly a skills gap. The demand for skilled workers, particularly in specialised fields like green construction and automation, will outpace supply in many regions.

The imperative for eco-friendly practices will also reshape construction jobs, favouring workers with expertise in renewable energy and energy-efficient technologies. Automation and robotics will play an increasingly pivotal role, transforming job types and requiring workers to adapt to digitalised workflows.

When we look deeper into the intricate and diverse landscape of construction employment, we also find that the industry encompasses a vast array of roles, from skilled tradespeople like brick layers and carpenters to architects, engineers, project managers, and administrative personnel. This diversity ensures that there's something for everyone, regardless of skill level or educational background.

Several factors contribute to the construction industry's booming employment landscape such as the relentless march of urbanisation, especially in developing countries, fuels the demand for new housing, commercial spaces, and infrastructure, leading to increased construction activity and job creation.

Governments around the world are also investing heavily in infrastructure projects, from roads and bridges to power grids and airports, creating a surge in construction jobs.

Add on the advancements in technology, as already mentioned and materials that are transforming the construction landscape and opening up new avenues for employment in areas like automation, robotics and sustainable construction practices – then the sky really is the limit in terms of job opportunities.

Numbers paint a picture, but the true impact of the construction industry's employment boom lies in the stories of the people it empowers. For millions, a career in construction provides a stable income, the opportunity to learn new skills, and the satisfaction of contributing to tangible progress in their communities.

Despite its significant contribution to employment, the construction industry faces challenges in managing its workforce. Attracting and retaining skilled workers, ensuring safe working conditions, and fostering diversity and inclusion are ongoing concerns.

However, these challenges also represent opportunities for improvement. By investing in training programmes, promoting safety measures, and embracing diversity initiatives, the construction industry can further strengthen its appeal and build a more inclusive and sustainable workforce for the future.