The number of construction workers has significantly decreased as housing construction sites have declined due to the sharp rise in raw material prices and the worsening housing sales market.
According to housing statistics released by the Ministry of Land, Infrastructure and Transport, the cumulative housing construction performance from January to April nationwide was 67,305 units, a 43.2% decrease compared to the same period last year (118,525 units). In the metropolitan area, it sharply dropped by 44.5% to 37,546 units compared to the same period last year, while in provincial areas, it decreased by 41.6% to 29,759 units.
The number of construction workers has significantly decreased due to the sharp rise in raw material prices and the downturn in the housing sales market, leading to a reduction in housing construction sites. The photo shows a construction site in Seoul. Photo by [Photographer's Name]
The decrease in construction sites has led to a reduction in the number of construction workers. According to the 'April Business Labor Force Survey Results' released by the Ministry of Employment and Labor, the number of construction workers was 1,448,000, down by 19,000 (-1.3%) compared to the same month last year (1,468,000).
The industry identifies significant departures among on-site construction skilled workers related to housing projects, as well as sales and marketing personnel. This is analyzed to be because construction companies are implementing stringent cost and workforce management to reduce losses caused by rising raw material prices and the worsening housing sales market.
An executive from a major construction company said, "Except for some areas such as the metropolitan region, the sales market is difficult, and raw material prices continue to rise, so tight management at the headquarters level is being implemented," adding, "Until the housing market recovers to some extent, workforce operation inevitably remains passive."
The scale of hiring in the construction industry this year is also below last year's level. The construction industry has been experiencing a decrease in monthly hiring compared to the same month last year. The number of hires in the construction industry was ▲182,000 in January (3,000 fewer than the same month last year) ▲196,000 in February (6,000 fewer) ▲224,000 in March (7,000 fewer) ▲277,000 in April (11,000 fewer).
The construction industry expresses concerns that workforce departures and reduced new hiring could negatively affect construction quality and safety.
A site manager at an apartment construction site in Gyeonggi-do said, "Although on-site personnel continue to decrease, it is difficult to replenish staff due to reduced profitability caused by rising material prices," adding, "We are managing to get by for now, but if workforce departures worsen, sites that need to meet construction schedules will inevitably face burdens related to safety accidents."
Another official at a construction site stated, "Above all, the decrease in new hires of on-site skilled construction workers is worrying," and claimed, "It is already difficult to find skilled workers such as equipment operators and assemblers, and if new hiring for these workers does not occur, the construction industry will face a serious labor shortage when the market recovers."
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