Top 10 Construction Companies Dismissed 1,400 Employees in One Year [Construction Clock Zero]

GS Construction Sees Workforce Growth Alone, While Nine Others Decline
75% of Builders Say "Uncertain" About First Half Recruitment
Construction Employment Down for Nine Months... Outlook Remains Bleak

Even the top 10 construction companies, which had maintained their employment scale despite the construction industry downturn, have reportedly reduced their workforce by about 1,400 people over the past year. As the economic chill made it difficult to place construction project orders, jobs also decreased accordingly. Two years ago, companies were optimistic about economic improvement and actively recruited talent, but recently the atmosphere has changed to the point where even hiring new employees is hesitant. Traditionally, the construction industry has been considered a representative job-creating sector due to its large workforce and high employment inducement coefficient, but analyses suggest its status is steadily diminishing.

According to the 'National Pension Subscription Workplace Details' from the National Pension Service on the 10th, as of January, the total number of National Pension subscribers among the top 10 construction companies by construction capability evaluation was 48,824. Compared to 50,275 in January last year, this is a decrease of 1,451 people (2.89%). Two years ago, in January 2023, the number of subscribers was 49,161. It increased by 1,114 the following year but has now decreased to a level lower than in 2023. Most of the top 10 construction companies surveyed have workplaces where employees are subscribed to the National Pension.

GS Construction, the Only One with 'Employment Growth'

Looking at each construction company, except for GS Construction, the other nine companies saw a net decrease in National Pension subscribers. Samsung C&T Construction Division dropped from 6,990 to 6,560 (-6.15%), Daewoo Construction from 4,836 to 4,543 (-6.06%), HDC Hyundai Development Company from 1,839 to 1,740 (-5.38%), DL E&C from 4,573 to 4,388 (-5.31%), with reductions ranging from a minimum of 37 to a maximum of 430 people. In contrast, GS Construction was the only company with a net increase, rising from 4,202 to 4,255, a 1.26% increase.

Construction companies are conducting workforce restructuring by reducing or not renewing existing contract workers. Due to the project-based nature of the construction industry, there are many contract workers whose employment status is highly sensitive to economic conditions. However, in recent years, construction project orders have been declining due to the downturn.

GS Construction was the only one among the top 10 construction companies to avoid workforce reduction. This was largely due to recording a new order amount of 19.91 trillion won last year, the highest in the company's history. A GS Construction official explained, "Like other industries, if there is no work, we absolutely do not hire," adding, "Since there is sufficient demand going forward, we have steadily hired new employees, resulting in an increase in workforce size."

Hiring Doors Shut... No Demand on Site

The employment market in the construction industry is freezing to the extent that even the top 10 construction companies are reducing their workforce. The total number of employed persons in construction has been declining for nine consecutive months. In January, employment decreased by 169,000, marking the largest drop since 2013. For mid-sized construction companies, which have recently been filing for rehabilitation procedures one after another, the survival of the company itself is uncertain. Employees working at these companies suffer daily from employment insecurity.

The employment outlook is also bleak. According to the '2025 First Half New College Graduate Hiring Plan' recently released by the Korea Economic Research Institute, 75% of construction companies responded that they have not established or do not plan to establish hiring plans for the first half of this year. Among all industries, construction had the highest proportion of negative responses regarding new hiring. There is no sign of an increase in the number of construction sites, which directly affects workforce size. According to the Ministry of Land, Infrastructure and Transport's 'January 2025 Housing Statistics,' housing permits in January decreased by 13% compared to the same period last year, and housing starts dropped by 55.7%.

Lee Eun-hyung, a research fellow at the Korea Construction Policy Institute, said, "The contraction in construction employment is mainly due to the decrease in the number of sites," adding, "Government measures may somewhat ease the situation, but since industry recovery is difficult in the short term and the employment environment is changing due to digital transformation (DX) and artificial intelligence (AI) adoption, it will be hard to reverse the downward trend."