The building sector is doing badly. In 2024, thousands of positions were destroyed due to the slowdown in the construction and renovation activity, a consequence of the real estate crisis. Professional organizations warn the government against a future “disaster” for the sector if nothing is done to stop this hemorrhage.
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– The construction sector has experienced a slowdown for many months.
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On the verge of collapsing. For more than two years now, the building sector has suffered from a net slowdown in its activity linked to the increase in construction costs and mortgage rates, which have prevented a number of households from concretizing their real estate purchasing projects . In the past 24 months, the number of building permits granted for new constructions has collapsed by more than 30% according to the Ministry of Regional Planning and Decentralization.
On the year 2024 alone, only 330,400 dwellings were authorized for construction, 12% less than last year. In addition, 263,100 sites were started in 2024, 11.1% less than last year.
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The abolition of many jobs in the construction sector
14,740 companies were lacking in 2024 in new construction, which threatens more than 45,000 jobs according to a study by the BPCE observatory. The French Building Federation (FFB) even speaks of 100,000 jobs destroyed by 2025, if the situation does not improve. Questioned by CapitalJean-Christophe Répon, the president of the CAPEB, the Confederation of Building Crafts, evokes “14,000 companies that put the key under the door in 2024” And “21,000 employees” who have lost their jobs. However, companies with less than 10 employees represent “97% of the salary fabric in the construction sector”indicates the president of the union. It must be said that in advance of the real estate sector, 1,554 promoters and manufacturers of individual houses were in a situation of cessation of payments in 2024, according to BPCE the observatory.
For Jean-Christophe Répon, the situation is “Inadmissible” and all the more “According to a Dares study (Directorate of Research Animation, Studies and Statistics), to keep ambitions (from the country) in terms of energy renovation, it would take 200,000 to 300,000 jobs of jobs In France”. “While we should hire, we should have recruitment difficulties, we are destroying employment”he advances.
The 2025 budget awaited by firm foot by the construction
In question, for the owner of Capeb, in addition to mortgage rates still greater than 3%, “Political instability”, which slows down the French in their construction and renovation projects. The dissolution of the National Assembly, the censorship of the Barnier government and the 2025 budget of the country which is slow to be adopted do not reassure consumers. “We should succeed in having a certain political stability and a 2025 budget so that individuals have more visibility and embark on work”says Jean-Christophe Répon.
Without budget for France, Jean-Christophe Repon fears a “Catastrophe” for the sector. “If we have to redo a year 2025 to -5 or -6% turnover, we will still destroy employment and at least on the same volume as that of the past year”he warns.
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