Construction Sector Is Creating More Jobs in Bahia Than Before the Pandemic

Written by Roberta Souza

Published on 29/04/2022 at 16:38

Foto: Reprodução Adobe Stock

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According to the Ministry of Labor, 7.35% of the total formal workers in Bahia are employed in the construction industry

The construction industry is growing in the state of Bahia, being the second state generating more jobs than before the pandemic. In early 2020, there were 114,000 formal job openings, while in early 2022, the number of jobs jumped to 133,000, which is an increase of 15%. Meanwhile, Salvador, the capital of Bahia, is the third municipality that generated the most formal jobs in the first months of this year: there were 3,043, behind only the cities of São Paulo and Rio de Janeiro.

The release of this data was made by the Brazilian Chamber of Construction Industry (CBIC) on March 27, during an event held at the headquarters of the Construction Industry Union of the State of Bahia (Sinduscon-BA). According to the Ministry of Labor, 7.35% of the total formal workers in Bahia are employed in the construction industry, thus highlighting the importance of the construction sector to the economy.

Job Creation in the Sector Increased by 20% Compared to the Pre-Pandemic Period in the Northeast

According to CBIC economist, Iêda Vasconcelos, the construction industry currently employs 20% more workers than before the pandemic in the Northeast, including Bahia. Bahia has over 20,000 formal employees, meaning the construction market is important for job and income generation.

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Challenges for the Construction Sector

However, in the coming months, this increase in job creation in the construction sector will have to face the problem of rising prices of inputs used in the construction industry, caused by problems in the industry during the pandemic.

According to Correio 24 horas, between July 2020 and March 2022, at least seven important inputs for the construction industry had increases of more than 75% in the capital of Bahia. The price increases are higher than Brazil’s inflation, which stands at 11.3% over the past 12 months, up to March.

However, the rise in prices of inputs used in the construction sector has not been fully passed on to end consumers, the buyers of properties, because the works carried out over the past year and in the first quarter of 2022 are the result of the business cycle initiated in July 2020, at a time when price increases were not as significant as they are now.

Among the municipalities analyzed by CBIC, Belo Horizonte, Rio de Janeiro, Salvador, Curitiba and São Paulo, Bahia’s capital stands out for having the least increase in residential property values. The increase was only 6% in the prices of properties sold in Salvador in the first quarter of this year compared to the same period in 2021, according to CBIC.

Construction Sector Is Creating More Jobs in Bahia Than Before the Pandemic

According to the Ministry of Labor, 7.35% of the total formal workers in Bahia are employed in the construction industry

Job Creation in the Sector Increased by 20% Compared to the Pre-Pandemic Period in the Northeast

Challenges for the Construction Sector

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Construction Sector Is Creating More Jobs in Bahia Than Before the Pandemic

According to the Ministry of Labor, 7.35% of the total formal workers in Bahia are employed in the construction industry

Job Creation in the Sector Increased by 20% Compared to the Pre-Pandemic Period in the Northeast

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