The Impact of Construction on Society,

the Economy and the Environment

Employment in the Construction Industry

The Construction industry in Northern Ireland employsapproximately 11% of the working population.

This percentage changes depending on the value ofconstruction activities taking place at any given time.

Construction activities can broadly be divided into four maincategories:-

• 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

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The world economy has slowed down in recent yearsresulting in less demand for commercial property. Theslow down has also created a financial crisis in the bankingsector. The banks have less money to lend people who wishto buy their own home.

These two factors have impacted on the demand for newbuildings particularly in Ireland.

Property in some areas has dropped to half price.

The following tables show the labour market structure inNorthern Ireland over a four year period.

Impact of Construction

Labour Market Structure for N.I.

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© 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 overthe last few quarters of this 4 year period.

There has also been a slow down in local and nationalgovernment spending on capital projects.

All these factors have worked together to reduce the amountof construction activities taking place during 2011 within theUK and Ireland and much of Europe. Ultimately the amountof construction activity/spending impacts on the amount ofmoney that is available to spend in the economy onconsumer products etc.

Less money available from lenders, resulting in lessdemand for domestic properties. In turn this means lessspeculative 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.

Summary