The construction sector has long been a barometer of South Africa’s economic health, from infrastructure megaprojects to housing developments and township upgrades, construction provides both direct employment and multiplier effects across the economy. Companies such as WBHO, Group Five (historically), Raubex, and Stefanutti Stocks have shaped the sector, while countless SMEs and micro-contractors form the backbone of community-based delivery. Despite its potential, the sector has been deeply affected by slow economic growth, project delays, and retrenchments.

The Construction Education and Training Authority (CETA) was established to ensure that the sector has a skilled and competitive workforce. Funded by the Skills Development Levy, CETA channels resources into training artisans, engineers, project managers, and technicians while also supporting learnerships and apprenticeships in trades like plumbing, electrical work, and bricklaying. Its work aligns with the National Skills Development Plan (NSDP) 2030, which prioritises a skilled workforce that can drive infrastructure development, reduce unemployment, and foster inclusive growth.

Stats SA data shows that construction employs more than 1.2 million people, but the sector has faced significant contractions over the past decade. Retrenchments have been widespread due to delays in government infrastructure rollouts and weak private sector investment. This instability has hit SMEs particularly hard, even though they play a vital role in job creation and service delivery.

One of the sector’s most persistent challenges is the mismatch between supply and demand for skills. While South Africa produces graduates in engineering and built environment fields, many lack the workplace experience required by employers. Conversely, there is a shortage of artisans, despite construction being an area where artisanal skills are most needed. This has led to reliance on imported skills in certain projects, undermining local job creation.

Youth unemployment remains a pressing concern. Although the sector has traditionally provided opportunities for entry-level labourers, mechanisation and cost pressures have reduced these roles. At the same time, women remain underrepresented, especially in technical and leadership positions. Efforts to promote gender equity have yielded some progress, but more is needed.

Looking forward, construction will remain a cornerstone of South Africa’s development. The government’s infrastructure investment drive focusing on transport, energy, water, and housing presents an opportunity to revitalise the sector. This depends on aligning training with demand, ensuring that graduates are work-ready, and supporting SMEs that can deliver projects at scale.

South Africa’s construction sector has the potential to be both a driver of economic growth and a platform for inclusive employment. With better alignment between training, project delivery, and SME development, construction can provide stable, long-term opportunities for youth and communities.

Questions for the Future

How can CETA accelerate artisan training and ensure workplace experience for graduates in engineering and construction?

What strategies can support SMEs in accessing large infrastructure projects while creating sustainable jobs?

How can retrenched workers be redeployed into emerging areas such as green building, renewable energy construction, and sustainable housing?