Share of skilled construction workforce to go up to 10.5% by 2030: report

August 3, 2023

The construction sector is expected to create 100 million jobs by the end of the decade, and the share of the skilled workforce is expected to rise from 9.7 per cent in 2023 to 10.5 per cent by 2030, according to a report by Knight Frank and The Royal Institution of Chartered Surveyors (RICS).

Currently, even as economies globally face growth downturns due to inflationary pressures and the interest rate actions of the central banks, India’s economic growth trajectory has remained resilient. In terms of GDP at market prices, the current size of India’s economy is estimated to be $3.4 trillion, and is positioned as the fifth largest economy globally.

The pace of economic growth has further widened the scope of expansion of the construction sector in the country, which includes real estate and infrastructure development to accommodate the growing needs of the economy.

Growth trajectory

By 2030, India’s economy is estimated to be worth $7 trillion, propelling a high degree of growth in the construction sector. The output generated from India’s real estate sector is estimated to grow to $1 trillion by 2030 from the existing $650 billion.

The growth push in the real estate sector is mostly emerging from residential demand, in addition to commercial, retail, hospitality, and warehousing developments, to cater to demand arising from the growing population. Between 2012-2022, 2.8 million residential units have been launched across the top 8 cities in India, translating into 3.1 billion square feet of residential real estate development.

Increasing need for skilled employees

According to the report, between 2012-21, the cumulative supply of core skilled employees, i.e., civil engineers, was 8,96,864. The report stated that owing to demographic advantage and the increased leaning towards education, an estimated 17 lakh civil engineers are estimated to seek employment by FY30, growing at a CAGR of 10.4 per cent with an average annual increment of 1.8 lakh.

However, as per industry discussions, only 50 per cent of civil engineers get absorbed into employment because fresh graduates find it challenging to match up to industry requirements, and it’s convenient to seek employment in other related industries.

Skilled employees in the construction sector are broadly defined as individuals who have attained graduation in related courses, primarily civil engineering.

Employees in this sector also graduate from other fields such as finance and management to support the non-technical job requirements of the sector. Apart from the core skilled workforce, the sector also provides employment to the secondary level of skilled workers who are vocationally trained, such as plumbers, carpenters, electricians, and more.

Leave a Comment