Residential construction dominates the sector in countries like Brazil, Colombia, and Mexico, where it represents more than 80% of total buildings.
SANTO DOMINGO – Globally, the construction sector currently employs more than 250 million workers, representing 7.7% of the overall workforce. Every million dollars invested in construction materials generates an average of 97 jobs in emerging markets, according to economists from three universities in the United States.
The report, “A Ladder to the Top: The Role of the Construction Sector in Job Creation and Rebuilding Emerging Market Economies,” conducted by Terwilliger Center for Housing Innovation , with economists from the Universities of Pennsylvania, California, and Washington, revealed that the construction industry, led by housing, is a significant but often overlooked source of employment in emerging market economies. The findings, recently released in the country by Habitat for Humanity International on World Habitat Day, show that the average number of jobs created by construction in the construction sector is comparable to 81 jobs per million invested in agricultural production and 96 jobs per million in the accommodation and food services sector. The study focused on Brazil, Colombia, India, Indonesia, Mexico, Peru, the Philippines, South Africa, and Uganda.
“These findings are vitally important for low- and middle-income countries that are deciding which areas to prioritize as they work to rebuild their economies weakened by the COVID-19 pandemic; particularly in a world where 1.6 billion people still lack decent housing,” said Patrick Kelley, vice president of the Terwilliger Centre for Habitat.
Many of these jobs, he explains, are geared toward workers with lower levels of formal education. The researchers found that construction jobs are relatively well-paid compared to other options available to workers with limited education.
The document also points out that construction workers in emerging markets often work outside of regulated and formal channels, with informal construction employment accounting for 50% in South Africa compared to over 90% in countries like India, Indonesia, and Uganda. Residential construction dominates the sector; for example, in Brazil, Colombia, and Mexico, it represents more than 80% of total building construction.
The researchers also concluded that measures to improve working conditions and practical training for construction workers can help urban areas, including those most affected by the pandemic, to develop in a more sustainable and equitable way.
From the Dominican Republic, Habitat for Humanity is developing projects that will generate approximately 7,035 jobs this year, with the goal of providing safe and resilient housing to low-income families. During 2021, the organization will focus its efforts on building complete homes using both traditional and innovative construction methods, such as prefabricated materials and recycled plastic, as well as replacing dirt floors with cement floors.
“Habitat for Humanity Dominican Republic firmly believes that housing is the engine of economic reactivation, and we call on the government, the private sector, development institutions, and civil society to work together to provide socially efficient housing and inclusive activities that stimulate the housing market to generate employment, as part of the post-pandemic mitigation and recovery plans,” stated Cesarina Fabián, national director.
About Habitat for Humanity Dominican Republic
Habitat for Humanity is a global, non-profit, non-governmental organization working to ensure that everyone has a decent place to live through programs focused on microfinance for housing, minimizing risk, and increasing disaster response. Habitat for Humanity Dominican Republic empowers families to build strength, stability, and self-sufficiency through housing. Since its inception in 1986, the organization has provided more than 30,000 housing solutions and impacted approximately 150,000 people.
Habitat for Humanity Dominican Republic invites you to get involved and donate through habitatdominicana.org and learn more on their social media @habitatdominicana
About the Terwilliger Center for Housing Innovation
The Terwilliger Center for Housing Innovation is a unit of Habitat for Humanity International that works with housing market stakeholders to expand market-based, responsive services, products, and financing so that families can improve their housing more effectively and efficiently. The Terwilliger Center's goal is to make housing markets more effective for people in need of housing and, in doing so, improve the quality of life for low-income families. For more information, visit habitat.org/tcis .
