Motu: Migrants, productivity, and the construction sector

March 2018

The construction sector is very dynamic, with lots of staff changing firms and many firms entering and exiting the industry. Photo: Motu.

With plans for building 100,000 new homes over the next ten years, construction is a sector at the heart of questions about New Zealand’s productivity.

New research from Motu Economic and Public Policy Research finds that the construction sector is very dynamic, with lots of staff changing firms and many firms entering and exiting the industry.

“Among those employed in the construction sector, fewer than 40 percent of people held the same job four years before a specific date and only around 40 percent held the same job four years after,” said Adam Jaffe, Senior Research Associate at Motu.

The research funded by BRANZ indicates that the high level of worker ‘churn’ is responsible for some differences in productivity between firms.

BRANZ is also involved in  the National Construction Pipeline Report. The Pipeline report is in its fifth year and complied for MBIE by BRANZ and Pacifecon. The national building and construction forecast shows a higher peak with a longer duration than previously forecast, with dwelling unit consents reaching a new peak for the next five years. Growth in non-residential buildings is forecast to continue for longer.

For more information on the construction sector, please see: Migrants, Productivity, and the Construction Sector | Motu