Construction slump deepens

[Anchor]

The number of employed individuals in the construction industry has decreased for fifteen consecutive months.

These days, many construction sites are also facing work stoppages, making it unlikely for employment numbers to rise in the near future.

This is negatively impacting the overall economic recovery.

Reporter Kim Jin-hwa has the story.

[Report]

The construction site for the Seoul youth housing project, which was scheduled for completion by the end of this year.

The vehicle entrance is closed, and the machinery has come to a halt.

Due to financial difficulties faced by the construction company, the project has been suspended for over a year.

The number of unsold homes nationwide has officially exceeded 70,000.

Of the approximately 79,000 registered construction companies, more than 400 have gone out of business since the beginning of this year, and if this trend continues, it is expected that over 700 will close this year, marking the highest number ever.

From May of last year to last month, employment in the construction industry has decreased for 15 consecutive months.

This is the longest decline since the 2008 financial crisis.

[Kim Jun-tae/Director of Education and Public Relations, Korean Construction Workers' Union: "In a survey conducted in May of this year, nearly half of the union members reported being unemployed."]

The long-term slump in the construction industry is offsetting the recovery in domestic demand.

There were expectations that the growth rate would rise this year due to the effects of the second supplementary budget, including consumer coupons, but the Korea Development Institute (KDI) has maintained its forecast from three months ago.

There are no signs of improvement in the local real estate recession, and the series of work stoppages has compounded the situation.

[Kim Ji-yeon/KDI Economic Outlook Division Head/Aug. 12: "Considering factors such as the tightening of loan regulations and the impact of safety accidents at construction sites, we believe that the recovery of construction investment will be delayed compared to previous expectations."]

The government's housing supply plan, which is expected to create housing construction jobs, is still pending.

The construction orders, which are an early indicator of workload, have also decreased by over 13%.

Both employment and growth appear to be trapped in the 'construction swamp.'

This is KBS News, Kim Jin-hwa.