Transcript Impact of Construction on Society and the Economy 8

The Impact of
Construction on Society,
the Economy and the
Environment
Employment in the
Construction Industry
The Construction industry in Northern Ireland employs
approximately 11% of the working population.
This percentage changes depending on the value of
construction activities taking place at any given time.
Construction activities can broadly be divided into four main
categories:•
•
•
•
New domestic construction
New commercial or civic construction
Renovation/maintenance work to existing buildings
Civil Engineering
Employment in the
Construction Industry
The number of people employed in construction impacts on
society, the economy and the environment.
The following table shows the range of managerial personnel
employed on a large construction project.
There are also a considerable number of people employed at
craft level including joiners, bricklayers, plasterers, plumbers,
electricians and many others.
Site Organisation for a large
Construction Project
.
Impact of Construction
The world economy has slowed down in recent years
resulting in less demand for commercial property. The
slow down has also created a financial crisis in the banking
sector. The banks have less money to lend people who wish
to buy their own home.
These two factors have impacted on the demand for new
buildings particularly in Ireland.
Property in some areas has dropped to half price.
The following tables show the labour market structure in
Northern Ireland over a four year period.
Labour Market
Structure for N.I.
.
© Northern Ireland Labour Market Press release March 2011
Labour Market
Structure for N.I.
© Northern Ireland Labour Market Press release March 2011
Impact of Construction
These tables clearly show an increase in unemployment over
the last few quarters of this 4 year period.
There has also been a slow down in local and national
government spending on capital projects.
All these factors have worked together to reduce the amount
of construction activities taking place during 2011 within the
UK and Ireland and much of Europe. Ultimately the amount
of construction activity/spending impacts on the amount of
money that is available to spend in the economy on
consumer products etc.
Summary
Less money available from lenders, resulting in less
demand for domestic properties. In turn this means less
speculative development.
All these impact on the demand for labour.
Slow down in the economy.
Economically mobile construction employees move to more
lucrative opportunities across Europe or indeed the world.