Construction will grow by 6-7 percent this year, predicts Rakennusteollisuus RT in its autumn economic review. Next year, the growth rate will decrease to 1,5 percent. The rapid rise has brought almost ten thousand new jobs to the construction industry per year.
The growth in construction is primarily driven by new construction, which reacts strongly to economic downturns. The volume of new construction is expected to grow by 14 percent this year, especially driven by housing construction and public service construction.
It is estimated that house construction starts will amount to 38 million cubic meters this year. The low level after several weak years is illustrated by the fact that the starts are still ten percent below the average of the last ten years, which is about 41 million cubic meters.
There is now growth in almost all building types. For example, business premises construction starts jump up by a fifth. In health care buildings and educational buildings, the number of starts has been steadily increasing for a long time.
"New construction is maintained by the development of concentration and the need to renew old, impractical and poorly maintained premises. The groundwork for building construction has also put infrastructure construction on a growth path, which is correspondingly focused on growth centers", Chief Economist of Rakennusteollisuus RT Sami Pakarinen says.
The growth of construction production is strongly reflected in employment. On average, there were 9 more people employed in construction activities in January-August than at the same time last year. The annual average number of people employed in the construction industry is expected to rise to 400 by the end of the year.
"The vast majority of the increase in employment in our entire country has come from construction this year. Even in the long term, construction offers jobs, especially in growing urban areas. This should be taken into account in the amount of training and the location of the training", Chairman of the Board of Rakennusteollisuus RT Tero Kiviniemi about YIT states.
The increased need for labor is strongly reflected in companies. The biggest factor limiting production is currently the availability of skilled labor. The kapeikos were born mainly for certain clerical-level positions.
For more information:
- RT's chief economist Sami Pakarinen, tel. 050 343 4337
- RT chairman of the board, YIT Oyj vice president Tero Kiviniemi, tel. 040 519 0112
- RT's Director of Communications Merja Vuoripuro, tel. 040 587 2642
Materials:
- The complete economic review and the press release can be found on RT's website www.rakennusteollisuus.fi/suhdanteet
- You can download key business cycle graphs and other up-to-date graphs from the Construction Industry pattern bank www.rakennusteollisuus.fi/keskeiset-suhdannekuvaajat