Issue Focus

● Over the past 10 years, the gap between the productivity of the domestic construction industry and the average productivity of the industry has been widening, so it is necessary to analyze and respond to the decrease in productivity. - Labor productivity in the construction industry is declining, but labor productivity in all industries has improved even during the COVID-19 era, and the gap between the construction industry and other industries is widening. - Over the past five years, both labor productivity based on added value and labor productivity based on industrial production have declined significantly, and the long-term trend also shows a downward trend. ● Total factor productivity in the construction industry was low except for specific years (2013 and 2016). Since improvement in total factor productivity means qualitative growth and efficiency improvement in the industry, efforts to improve efficiency throughout the industry are required, such as technological advancement, management innovation, elimination of regulations that cause inefficiency, and improvement of small industries. ● The labor productivity of Korea's construction industry appears to be at a good level when considering national income, but the ranking by OECD country has declined, and it has become more difficult to bridge the gap with major advanced countries. ● As a result of analysis of factors affecting productivity, such as labor input, industrial production, technology development, institutions and regulations, the productivity gap between the construction industry and other industries is likely to widen in the future. ● In order for the construction industry to secure growth potential and achieve sustainable growth in a situation where the environmental conditions surrounding the construction industry are deteriorating, innovation and support for labor, technology, and systems that are put into the production process are essential, more than ever before. The government's policy efforts to improve productivity are important.