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Eswatini’s construction industry adapts to rising temporary employment as workforce shrinks

By Ncaba Ntshakala

The construction industry in Eswatini continues to play a critical role in employment generation, despite facing notable shifts in workforce composition and a shrinking labour force.

According to the 2023/2024 Construction Performance Report released by the Construction Industry Council (CIC), the sector employed an estimated 11,082 workers for the financial year ending March 31, 2024.

This figure marks a 3.6% decline from the previous year’s workforce of 11,492 employees and follows a significant 16% drop recorded between 2022 and 2023.

A striking shift observed in the sector is the rising proportion of temporary workers, who now make up approximately 65% of the total workforce.

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This marks a 3% increase from the previous year, when temporary employees accounted for 32% of all jobs, and permanent employment stood at 68%.

The growing reliance on short-term contracts reflects a shift toward project-based employment, as companies navigate economic uncertainties and fluctuating demand for construction projects.

This trend suggests that businesses are prioritizing flexibility in workforce management, opting for short-term hires to align with the cyclical nature of construction activities.

Construction Industry Employment Structure by Type for Year 2023.

Conversely, permanent employment declined by 3%, highlighting a move away from long-term workforce commitments.

The sector remains a significant contributor to national employment. While the construction industry offers crucial job opportunities, employment remains highly male-dominated, with men making up the majority of workers, particularly within the younger demographic.

The report categorizes workers into two age groups: youth aged 18 to 35 and adults above 35.

However, despite its historical role as a major employer, the industry’s workforce has continued to shrink over recent years, raising concerns about long-term sustainability and stability.

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Employment distribution by age was said to reflect shifting dynamics in the industry, with younger workers continuing to dominate the workforce.

While youth participation remains strong, the overall reduction in workforce numbers indicates a contraction in employment opportunities, potentially linked to fewer large-scale projects or economic pressures affecting the sector.

The data highlighted the need for strategic interventions to ensure the industry remains a sustainable source of employment while balancing the increasing reliance on temporary contracts with the need for long-term job security.

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