HR & Management News South Africa

Construction investment can create jobs

South Africa's construction industry has shed 75 000 jobs in the past two years according to Master Builders South Africa (MBSA) amid calls for it to act as a catalyst in creating jobs for millions of unemployed people in the country.

The organisation's president, Jean-Marie Talbot says that in 1990 the construction sector accounted for about 7% of the total formal employment in the economy and last year that figure had dropped to just 4,1%.

Moreover, he says, the level of unskilled and semi-skilled workers employed in the industry is vast and amounts to about 74% of its workers. As a result the building and construction sector can be used to create opportunities for people who have no skills or work experience, says Talbot.

He says that in the total economy the level of semi-skilled or unskilled workers is around 40%.

Talbot urged the government to embark on major capital and infrastructure expenditure projects saying that for every R1-billion spent on construction activity 3 377 jobs would be created with a further 1 590 jobs being created indirectly in sectors that support the building and construction sectors.

He believes the construction sector has a crucial role to play in job creation and urged the industry to work together on finding ways to mobilise greater levels of investment in major projects that are urgently needed in South Africa.

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