One of the key sectors of the Philippine economy, the construction industry contributed about 336 billion Philippine pesos to gross value added (GVA) during the fourth quarter of 2022. The construction sector also makes up a large part of capital formation, which measures the total amount of construction expenditures incurred by public and private firms. However, in 2022, the construction sector reported significant contractions, primarily due to disruptions caused by the global coronavirus pandemic.
Constructions employment in the Philippines increased in 2021
Constructions employment in the Philippines increased in 2021 as the number of service contracts and projects awarded to Filipino construction companies grew. The majority of overseas construction workers are employed in the African, Middle Eastern, and Oceanic-Pacific regions. While the number of projects awarded to Filipino construction companies is on the rise, the amount of employment has not kept pace with the increase in construction activities. While the number of construction workers in the Philippines has increased, the rate of unemployment has remained high, which puts a strain on the country’s economy.
In 2021, constructions employed an average of 95 people per establishment. Total compensation paid to construction establishments in 2021 was PHP21.2 billion, or PHP153,505 per employee. Employment in the construction industry increased by over a million people, but it is still too low to support the country’s economy. This reflects the fact that the government is not subsidizing the construction sector. And while there is a shortage of skilled workers, there is a growing demand for construction-related skills.
Constructions employment is expected to increase in 2022
According to the Philippine Bureau of Statistics, construction employment is projected to increase by 2022. The country is expected to have a 21.9% increase in construction jobs this year. In addition, it is expected to grow 7.8% a year from 2023 to 2025. The government is currently promoting several infrastructure projects including the development of affordable housing, renewable energy, and transportation infrastructure. Rising fuel prices, however, will pose a challenge to the Philippine construction industry.
The Philippine Bureau of Statistics expects the construction industry to grow at a moderate rate through 2022. According to their projections, construction jobs will increase by 3.9% on average over the period. In addition, construction workers will enjoy better wages thanks to technological innovations such as AR and BIM. Furthermore, sustainable features will become more standard for buildings, ensuring long-term savings. Nevertheless, this trend may not continue in the foreseeable future because material prices are still sky-high.
PNCC is the largest construction company in the Philippines
PNCC is a government-owned corporation with extensive operations across the country. The company was originally incorporated to conduct general contracting business. Since 2002, however, the company has shifted its focus to infrastructure projects and maintenance. As a result, its franchise to operate tollways was terminated on April 30, 2007.
PNCC has built a reputation of excellence in completing projects on time and within budget. The company has successfully completed projects for foreign and local developers alike, all while delivering quality and on time. This makes for good business for everyone. Another leading construction company is DATEM, Inc., which started out as a small construction firm in Pandacan, Manila. They are known for the timely completion of projects, and they have a vast portfolio of industrial, commercial, and infrastructure projects.
Disaster-resistant construction skills are needed in the Philippines
The Philippines is an archipelago of over 7,000 islands located on the Pacific Ring of Fire, making it one of the most disaster-prone countries in the world. Natural disasters like Typhoon Haiyan have destroyed large areas of the country, killing at least 6,300 people. Today, thousands of Filipinos are struggling to rebuild their lives after the storm. The largest recovery expense is often housing reconstruction.
One way to help the people rebuild their homes is to provide them with disaster-resistant construction skills. The government has launched a disaster-resilience construction training program for the poor to help them build a more resilient home. In addition to providing training for residents, CARE Philippines also provides materials and cash grants to help them repair damaged houses. These funds are intended to help rebuild the damaged houses, and to improve the livelihoods of the people who live there.