Turkiye’s Construction Sector Reaches Employment Peak

Employment in Turkiye’s construction sector reached a record this May, as urban renewal projects gathered pace across the country, particularly in Istanbul, according to official data.

The number of salaried employees in construction rose 1.2 percent year-over-year to 1.93 million in May, marking the highest level ever recorded for the month, according to data compiled from the Turkish Statistical Institute (TurkStat).

The sector added 22,576 workers compared with the same month a year earlier.

Across the broader economy, total salaried employment in the industrial, construction and trade-services sectors increased 0.5 percent annually to 15.97 million. Employment declined 3.2 percent in industry, while trade and services recorded a 2.3 percent increase.

Within construction, 1.27 million people were employed in building construction, 248,252 in civil engineering projects and 418,461 in specialized construction activities. Employment in those segments rose 1 percent, 4 percent and 0.1 percent, respectively.

Industry representatives attributed the record employment levels largely to accelerating urban transformation projects.

More than 276,000 independent housing units were undergoing urban renewal across Istanbul’s 39 districts as of July, which sector representatives say reflects continued momentum of redevelopment efforts.

Ali Hepşen, a professor at Istanbul University’s Faculty of Business, said the data indicated that activity in the sector remains resilient.

“This data shows that the recovery in the construction sector is continuing not only on the production side but also on the employment side,” Hepşen told Anadolu Agency (AA).

Emphasizing that attention should be paid to the fact that employment growth is occurring at different rates across various sub-sectors, Hepşen said, “While the 4 percent increase in nonbuilding construction reflects the impact of infrastructure and public investments, the 1 percent rise in building construction points to a more limited momentum.” Meanwhile, the 0.1 percent increase in private construction activity indicates that a cautious outlook persists in certain areas of the sector, he added.

Hepşen said urban renewal projects, strong housing sales and reconstruction work in Türkiye’s earthquake-hit regions had been the main drivers supporting employment.

However, he added that tight financing conditions and slower-than-desired new housing supply continued to limit stronger job creation.

Engin Keçeli, chair of the Association of Constructors and Real Estate Developers (INDER), said production in the construction sector has accelerated compared to previous years, adding that both new projects and urban transformation had contributed to higher employment.

Keçeli noted that May and the other summer months are a period of intense activity for construction output.