Recruitment and remuneration trends in the construction industry

Since the shutdown in the second quarter of 2, the construction industry has been facing persistent economic difficulties. The increase in the price of materials linked to COVID and the extension of construction deadlines had weakened the sector in 2020, which is now faced with rising energy prices since the start of the Russian-Ukrainian conflict.

Evolution of the market and remuneration policies

In this delicate context, the implementation of the government's "France Relance" and "Economic and social resilience" plans around themes related to energy renovation, price reviews and the freezing of late payment penalties, has enabled companies to hold up well last year. The construction industry has regained a good momentum in 2022 with order books of up to 6 months of visibility on average, all companies combined.

More than 500.000 housing units were authorized for construction between July 2021 and June 2022, an increase of +15%* compared to the previous 12 months. The slight growth in renovation/rehabilitation should be confirmed with the support of “MaPrimeRénov'”. If the volume of activity stabilizes at a low level in Public Works/Civil Engineering, the slight increase in local investments could change this trend. The project management sector remains a buoyant market increasingly aware of sustainable development. Technical design offices and engineering companies still encounter as many difficulties in recruiting, particularly for all the fluids/HVAC/Electricity and VRD lots.

To adapt to the current context of strong economic and geopolitical uncertainties where margins are shrinking, companies must maintain a certain degree of competitiveness to enable them to attract talents that are still just as rare, and to follow new technological trends. In addition to the other levers to be activated, the trend is towards higher salaries, not simply to recruit, but above all to retain employees who are ever more demanding in terms of their quality of life at work.

What vision for the future?

The construction sector remains a strong provider of jobs (particularly in Île-de-France thanks to large-scale projects, such as the Olympic Games or Greater Paris), with a shortage of skills that is still just as marked. The imbalance between supply and demand leads to higher wages and more and more counter-proposals. The various indicators point more towards a decline in activity in 2023. Indeed, the fall in the granting of building permits has led to very particular vigilance in one of the most buoyant sectors of the French economy.