Belgian Construction Sector Faces Significant Job Losses Amid Ongoing Crisis
Since 2021, approximately 7,000 jobs have been eliminated in the Belgian construction sector, with around 1,000 fewer employers operating in the industry, announced the sector federation Bouwunie on Sunday, reports 24brussels.
In the first quarter of 2021, the Belgian construction sector employed 147,016 workers, whereas that number has decreased to 140,206 in the same quarter this year. According to data from the Constructiv sector fund reviewed by Bouwunie, a total of 34,000 jobs have been lost since the onset of the financial crisis in 2012, with 1,006 fewer employers reported since 2021.
Bouwunie attributes the decline to a significant number of bankruptcies and a decrease in new business ventures. “The construction sector is really in crisis. The number of new building permits continues to fall, which has been putting pressure on the new-build sector for some time. The renovation sector held out for a long time, but those order books are also gradually shrinking,” stated the federation.
Jean-Pierre Waeytens, managing director of Bouwunie, criticized the Flemish government’s decision to abolish home renovation subsidies for higher income groups, arguing that such actions exacerbate the crisis. He emphasizes the need for a “long-term policy that effectively supports construction contractors” rather than the current, often “ad hoc” measures. Specifically, Bouwunie is advocating for administrative simplification, a reduced VAT rate for standard new-build homes, and a general tax deduction for private individuals.
The construction sector, vital to Belgium’s economy, now faces greater challenges amid a regulatory environment perceived as increasingly unfavorable. The urgency for policy reform is highlighted as industry stakeholders push for sustainable measures that can stabilize the sector and secure employment for thousands of workers.
As the crisis unfolds, the impact on the overall economy remains to be seen, prompting calls for immediate action from both industry leaders and policymakers to avert a deeper housing crisis.