Labor scarcity is one of the trends that the Philippine construction sector expects to continue this year as economic activity picks up, a homegrown project management company’s top executive said on Wednesday.

According to JCV & Associates (JCVA) President, CEO and founder Jason Valderrama, there will still be a shortage of construction manpower in the country despite the increased demand for labor in this field due to two factors.

For one, Valderrama said during a webinar that workers are leaving the country in search of greener pastures.

“So basically our local labor market is competing against the likes of [the] Middle East, and the companies in those countries offer higher wages.”

Another factor that will affect labor in the construction sector is its projected rebound this year.

“Given the accelerated growth of the Philippine construction industry in the past year (21.9 percent in 2021) and its projected 14.9 percent growth in 2022, we also foresee an increase in demand for construction jobs,” he told the BusinessMirror in an e-mail interview.

Former Labor Secretary Silvestre Bello III previously reported that around 800,000 to 1 million skilled workers in the field of construction, architecture, and engineering are needed up to 2022 to address the labor shortage amid the country’s construction boom.

Based on estimates of the Organization of Socialized and Economic Housing Developers of the Philippines, some two million addition workers would be needed until this year for the “Build, Build, Build” program.

President Ferdinand R. Marcos Jr. had said he will continue the infrastructure project program initiated by his predecessor.

To address the shortage supply of manpower in the field, the JCVA official said major construction companies are implementing a number of measures, such as forging tie-ups with the Technical Education and Skills Development Authority to train and upskill the local construction workforce.

“They’ve been doing that already. But they’re putting more emphasis and more importance in that given the scarcity and the shortage [of construction workers nationwide].”

While the construction sector traditionally has been a laggard in terms of embracing technology and digitalization, he said the health crisis has accelerated the digital shift of industry players.

“With the growth in construction demands not just in NCR [National Capital Region] but also in other regions such as Calabarzon [Cavite, Laguna, Batangas, Rizal and Quezon], we really see the need for tech-enabled programs and solutions that can help augment the skill gap.”

Other industry trends to expect this year and beyond, Valderrama said, are the rise of virtual and connected construction, construction/project management software, greener construction, modular and prefabricated construction, as well as supply chain disruptions.

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