Dynamics of human resources and labor productivity in the Construction and Real Estate Operations sectors

Abstract

Human resources are a main production factor determining the sustainable development, prosperity and competitiveness of any business unit, industry or the economy as a whole, and labor productivity is a main indicator providing information on the efficiency and quality of this resource in the production process. The object of research in the study is the Construction and Real Estate Operations sectors and the subject of research is the quantitative and qualitative characteristics of human resources and labor productivity of the persons employed in both sectors for the period 2005-2021. The author's goal is to study the dynamics of human resources and labor productivity in two sectors of particular importance for the national economy and, on this basis, outline the trends in their changes, as well as the reasons for these changes. The scope is limited to the study of indicators characterizing the development of both sectors, including the number of functioning enterprises, incl. by the number of persons employed in them, number of persons employed, average salary and educational level of persons employed in both sectors, in a comparative plan, including the general trends in the country, as well as the labor productivity of the persons employed in both sectors, presented by the gross value added (GVA) indicator, relative to the number of employees and time worked by them. The main methods used are the methods of analysis and synthesis, induction and deduction, description and comparison. Based on the analysis, the main conclusions about the dynamics of human resources and labor productivity of the persons employed in both sectors for the period 2005-2021 are summarized, major problems are outlined and measures for their overcoming are proposed, which determines the practical significance of this study. In the Construction sector, both the positives and negatives of the change in the environment are more tangible; stand out: low level of labor remuneration, low educational level and low labor productivity, which are interconnected and to a significant extent mutually predetermine each other. Real estate operations sector characterizes by a more balanced development during the period, employed persons have a higher educational level, but salary slow down their growth, remaining below the national average levels. Labor productivity, as an important economic indicator closely related to economic growth, competitiveness and the living standard in the country, shows a sustainable trend of growth at the national level, although it remains significantly below the EU average levels. In the real estate sector, there is also a positive trend, but with a higher degree of dynamics of the indicator during the period. In the Construction sector after 2012, there is a negative trend, most pronounced at the end of the period, due to in a significant extent to the disproportionate attraction of human resources compared to the realized product.