Significantly fewer vacancies than a year ago
The number of job vacancies has fallen significantly compared to the previous year, as shown by the Adecco Group Swiss Job Market Index with a quarterly focus on construction. However, the situation stabilized in the third quarter of 2024: Job vacancies are increasing very slightly. The construction industry is an important pillar of the Swiss economy. Although the number of vacancies in construction occupations has also fallen compared to the previous year, demand for these skilled workers remains at a high level. In addition, a further increase in demand for construction specialists is expected in the future.
This is shown by the Adecco Group Swiss Job Market Index, the scientifically based study by the Adecco Group Switzerland and the Job Market Monitor Switzerland of the University of Zurich.
Current development
The Adecco Group Swiss Job Market Index remains stable in the third quarter of 2024. The negative trend of the last three quarters has thus come to an end for the time being. The number of vacancies has increased slightly by 2% compared to the second quarter of 2024 and is thus stagnating at a similar level. Compared to the same quarter of the previous year (Q3 2023), the index value is 12% lower.
"Although the Job Index is 12 percent below the previous year's figure and the number of unemployed people rose by more than 22,400 in September compared to the previous year, there are also signs of positive developments. For example, the number of vacancies in the third quarter is no longer falling. In addition, the employment prospects of Swiss companies rose again in the summer for the first time in two years. A look at the KOF Economic Barometer also suggests that the Swiss economy is slowly recovering. However, this recovery depends on how the geopolitical situation develops," says Marcel Keller, Country President Adecco Group Switzerland.
Swiss construction professions: demand remains high despite slight decline
The construction industry is an important pillar of the Swiss economy. According to the Swiss Association of Master Builders, the construction industry contributes 10 % to Switzerland's gross domestic product and, according to the Federal Statistical Office, 6.6 % of the workforce were employed in the construction industry in 2023. The importance of the construction industry is also reflected in the demand for skilled construction workers: Over the last eight years, demand for construction occupations has increased massively. Since 2016, the number of vacancies has increased by 70 %. In addition, job growth for construction specialists has been more dynamic than job growth in Switzerland as a whole.
Corona pandemic boosts demand for construction workers
It is worth noting that job growth increased rapidly, particularly after the pandemic year 2020. Despite challenges at the beginning of the pandemic in spring 2020, demand remained stable, as extensive construction site closures only occurred sporadically and for a short period of time. From 2021, there was a clear upward trend in job growth, which peaked in 2023. The strong economic recovery, the favorable financing environment due to negative interest rates and the change in living conditions due to working from home led to increased demand for construction and expansion measures. This fueled the demand for skilled construction workers.
Slowed upward trend
It can currently be observed that the positive trend of recent years has slowed for the time being. In 2024, the number of vacancies fell by 7% compared to the previous year. There are several reasons for this: Firstly, economic growth has slowed, making companies more cautious when investing in construction. Secondly, the end of the era of low interest rates since the end of 2022 has made investments in real estate more expensive, particularly in residential construction projects. In addition, high building material prices are driving up the costs of construction projects further. These factors are leading to fewer new orders, less construction activity and ultimately to a drop in demand for skilled construction workers.
Professions with planning and management functions in particular have seen a negative job trend compared to the previous year. For example, the number of advertised positions for architects and civil engineers has fallen by 17%. The occupational group of construction supervisors, foremen and foremen in the main construction trade has 9 percent fewer vacancies. In comparison, the occupational group of finishing specialists and related professions (e.g. roofers, glaziers or painters) experienced a 5% decline in job advertisements. The least negative development was seen among construction specialists and related professions (e.g. carpenters, boat builders and blind fitters), which remained almost at the same level as the previous year with 2% fewer advertised positions.
Future prospects: Sustained demand for skilled construction workers expected
Although the number of vacancies for construction specialists has decreased slightly in the current year, job advertisements remain at a historically high level. There are also many indications that skilled construction workers will continue to be in high demand in the future. According to a study by the Swiss Association of Master Builders, there will be a shortage of around 16 % of the personnel required in the main construction industry in 2040, which corresponds to around 5,600 skilled workers.
"The growing population and the limited number of vacant apartments will lead to increased demand for living space and increased construction activity. In addition, many people working in the construction industry are approaching retirement. These factors will continue to drive demand for construction specialists in the future," says Yanik Kipfer, Job Market Monitor Switzerland.
Source: www.adeccogroup.com
