The number of paid employees in the construction sector has reached a record high! However, there is still a significant shortage of workers in the industry.

The number of paid employees in the construction sector reached nearly 1.848 million as of July, marking the highest level ever recorded. According to the data from the Turkish Statistical Institute, the total number of paid employees in the industrial, construction, and trade-service sectors increased by 3.4% on an annual basis to reach 15.889 million 385 thousand people in July.

CONSTRUCTION SECTOR HAS THE HIGHEST EMPLOYMENT

When examined by sectors, one of the highest increases was observed in the construction sector. The number of paid employees in the construction sector increased by 8.7% in May compared to the same period last year, reaching 1.847 million 922 thousand. With this increase, the number of paid employees in the construction sector reached its all-time high.

REAL ESTATE FOLLOWED CONSTRUCTION

Meanwhile, the number of people employed in the real estate activities sector reached a record level of 124,274, increasing by 1.9% compared to the same month last year.

Neşecan Çekici, the President of the Association of Real Estate Investors (GYODER), stated that the number of employees in both the construction and real estate activities sectors reached a record high as of July, and said, "These figures are consistent with the latest housing sales data announced for July and August. In fact, there has been an increase in housing sales in the last 2 months.".

Çekici stated that housing sales turned positive on an annual basis in the January-August period, and said:

"The positive momentum in both the number of employees and sales volumes demonstrates the importance of the construction sector for the Turkish economy and employment. Those who have the down payment have started to take action due to concerns about possible price increases. Thus, the existing inventory is rapidly decreasing. There is a need for new supply. This situation keeps construction activities alive. We believe that the positive momentum in both housing sales and employment will continue."

"The number of paid employees per apartment has increased by 60%"

Ramadan Kumova, the Chairman of the Board of Directors of the Association of Housing Developers and Investors (KONUTDER), stated that the number of paid employees in the construction sector reached a record high of 1.847 million 722 thousand in July, and said, "The closest figure to this was reached in 2017 with 1.833 million people.".

INSTITUTIONALIZATION INCREASED THE APPEAL OF THE SECTOR

Kumova, who stated that the number of employees in construction has increased with institutionalization in the sector, said, "If there were 5 people working on a project in the past, now there are 7-8 people. In other words, as the quality of projects increases, there is an increase in the number of personnel. Accordingly, the number of paid employees per apartment, which is obtained by obtaining a permit, has increased by 60% between 2010 and 2024.".

Kumova explained that the number of paid employees can vary depending on the period, and that employment rates increase in the months following the increase in the number of permits obtained, especially in the construction sector.

Kumova stated that 200,000 new employment opportunities were created for housing production in the Anatolian side alone, and said, "This figure corresponds to 11% of the total workforce, which is a significant increase. We expect the number of paid employees to increase by around 5% compared to 2023 throughout the year.".

CONSTRUCTION SECTOR IS IN NEED OF EMPLOYEES

Hakan Şişik, the President of the Anatolian Side Construction Contractors Association (AYİDER), also mentioned the reasons for the increase and said, "Among the reasons for this increase, we can mention the ongoing construction projects in the earthquake zone, especially the accelerated urban transformation projects in Istanbul and the ongoing construction in holiday regions.".

Şişik stated that the construction process continues intensively in the 11 provinces affected by the earthquake, and that there are projects in both the real estate and infrastructure sectors, and that urban transformation also increases the number of employees.

Şişik emphasized that despite the record-breaking number of employees in the sector, there is a serious shortage of workers, and said, "In luxury housing projects, we may have to wait for a skilled worker for 2-3 months. This affects construction costs and the duration of the project. With the decrease in interest rates and the increase in interest in housing, we can say that there will be more construction in 2025 and naturally, more employees will be needed.".