Photo Credit: Daewoo E&C

 

 

[Alpha Biz= Kim Jisun] Despite efforts to maintain employment levels during the construction industry downturn, even the top 10 construction companies in South Korea have collectively reduced their workforce by approximately 1,400 employees over the past year.


According to the National Pension Service’s (NPS) workplace enrollment data released on the 5th, the total number of employees enrolled in the top 10 construction firms, based on construction capability evaluation rankings, stood at 48,824 as of January 2024. This marks a decrease of 1,451 employees (-2.89%) compared to 50,275 in January 2023. Two years ago, in January 2023, the figure was 49,161, meaning that after an increase of 1,114 employees in 2024, the workforce has now shrunk below 2023 levels. Most of the surveyed companies have a workforce primarily covered by the National Pension Scheme.


By company, nine out of the top ten construction firms experienced a net decline in pension-enrolled employees, with GS Engineering & Construction (GS E&C) being the only exception.


- Samsung C&T (Construction Division): 6,990 → 6,560 (-6.15%)
- Daewoo E&C: 4,836 → 4,543 (-6.06%)
- HDC Hyundai Development Company: 1,839 → 1,740 (-5.38%)
- DL E&C: 4,573 → 4,388 (-5.31%)
 

Other firms recorded declines ranging from 37 to 430 employees.
On the other hand, GS E&C was the only firm to record an increase, with the number of pension-enrolled employees rising from 4,202 to 4,255 (+1.26%).


The job cuts have primarily come from reductions in contract-based positions or non-renewals of expiring contracts. Due to the project-based nature of the construction industry, a significant portion of the workforce consists of contract workers, whose employment status is highly sensitive to market conditions. However, new project orders have been declining in recent years due to the prolonged industry slump.


GS E&C's ability to buck the trend is attributed to its record-breaking 19.91 trillion KRW in new orders last year, the highest in the company's history, which has helped sustain employment levels.

 

 

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