ERIC estimate sees 8.9 percent employment growth in the sector in April following rise in activity
The recovery in the construction sector is already positively affecting the job market, the latest figures say.
Construction was already looking up lately, with a 6.7 percent growth seen in the first quarter of the year according to the INDEC statistics bureau injecting optimism in an economy that is moving slower overall, but the sector’s employment figures released monthly by the Construction Industry Statistics Institute (IERIC) said this has now caused jobs to grow by almost nine percent in April too.
The 8.9 percent rise in formal employment is the highest rate of growth seen in the sector since October 2011, and it means 416,535 people are now registered construction workers. It was the fourth consecutive month of job creation, which has meant that, since the beginning of the year, employment has gone up by 5.5 percent.
INDEC’S numbers had also marked April as an especially good month for the sector, as it said economic activity grew by more than 10 percent in the yearly comparison on that month.
But construction still has some way to go before it reaches the levels it saw in 2008, when employment was 7.1 percent higher than today. When compared with the slower years of 2011 and 2012, the sector is just 1.7 percent away from getting to that level.
The highlight of the year
Construction has been one of the sectors that have done better in a year in which other areas of the economy are struggling.
Its improvement has been emphasized by President Cristina Fernández de Kirchner in her public speeches this year, where she argued that the efforts of the state to boost aggregate demand through public spending and the scope of the state-ran housing programme Procrear are the reasons behind the recovery.
The change in trend has led to positive expectations among sector business leaders surveyed by INDEC. As many as 36 percent see their sector growing in the second quarter of the year and 40 percent do not foresee any changes. The same view is shared by several private economic consultancies, including Ecolatina and Economía y Regiones.
Real estate seems to be slowly picking up pace too, with specialists in the sector reporting higher interest from potential buyers and an end to plunging prices.
Date: June 30, 2015