"There is a shortage of skilled workers at construction sites"...KRIHS presents 5 strategic directions

[Financial News] As the 'shortage of skilled workers' in the domestic construction industry is becoming entrenched as a structural problem, the Korea Research Institute for Construction Policy (KRIHS) has proposed policy directions and implementation strategies that the government, industry, academia, and research community should jointly undertake.
KRIHS announced on the 14th the 'Research on Strategies and Implementation Tasks for Securing Skilled Workers at Construction Sites', diagnosing that the imbalance in the supply and demand of skilled workers in the domestic construction industry is becoming entrenched as a structural problem beyond a short-term labor shortage. It proposed five long-term strategic directions: △expansion of construction talent △creation of a technology-oriented environment △pursuit of continuous growth △improvement of construction culture △establishment of a future-ready cooperation system.
According to the research, over the past 10 years, the number of entrants and enrolled students in construction-related departments has generally been on the decline. In particular, the Departments of Architectural Equipment Engineering and Civil Engineering recorded double-digit decline rates. On the other hand, the Departments of Architecture and Urban Engineering showed an increasing trend, widening the gap in influx between majors.
The decrease in youth influx is seen across universities in general, with the number of entrants decreasing by 8% and the number of enrolled students decreasing by 16%. The impact of such demographic changes varies by industry sector, with small and medium-sized construction sites in particular being significantly negatively affected in the construction industry.
Among those with technical qualifications, the number of those acquiring engineer qualifications increased by 153% since 2014, but the proportion of those in their 20s decreased while the proportion of middle-aged people in their 40s and 50s and older steadily expanded, with the aging of skilled workers progressing rapidly.
On the demand side, the employment scale of skilled workers in both construction and design/engineering fields has been continuously increasing, with the proportion of skilled workers in the construction field increasing from 18% in 2004 to 27% in 2023, a 9%p increase. This is interpreted as a result of strengthened safety and quality regulations and industrial structural changes such as technological advancement driving employment demand.
The employment scale of skilled workers has continued to increase regardless of the construction economy. It is expected that the demand for skilled workers will expand in various areas such as digital transformation, eco-friendly and smart construction technologies.
Meanwhile, in the case of skilled workers at construction sites, the working environment of construction sites and the recent increase in responsibilities on-site have reduced the occupational attractiveness, making it difficult for construction companies to secure competent skilled workers. The reasons cited for the difficulty in hiring skilled workers at construction sites include poor working conditions and welfare, dissatisfaction with wage levels, excessive workload, and lack of job vision. The increase in on-site work and the concentration of responsibility on site managers, along with the lack of corresponding authority and compensation structure, lower the occupational attractiveness of the construction industry and hinder the influx of young people.
In response, the report stated, “We aimed to seek ways to secure competent talent in line with environmental changes such as youth shortages and changes in social perception, moving beyond short-term prescriptions focused on smooth labor supply.”
Seong Yu-gyeong, a research fellow at the Korea Research Institute for Construction Policy, emphasized, “Construction skilled workers are not just simple labor, but leaders of construction sites who lead projects to success amidst complex interests and systems and policies. It is time for the industry, government, and academia to share roles and cooperate to build a sustainable talent ecosystem.”

ming@fnnews.com Jeon Min-kyung Reporter