Real estate crisis: the construction sector expects to lose 150,000 jobs over the next two years.

At the end of the year, the situation in the construction industry looks quite bleak, and 2024 promises to be even more grim. The French Federation of Construction (FFB) found in its latest report on the state of affairs that its activity forecast has once again been revised downward, with data updated since the September report. Previously, the organization anticipated a decline in production volumes by0.2%, but now it predicts a reduction in0.6%Initially, growth was expected this year.0.7%After a growth was recorded in 20221.7%, not on3.1-3.2%As previously reported, this information has been adjusted in light of the latest statistical data.

A black year for the industry

It's not surprising that the decline in indicators is attributed to the worsening crisis in the housing construction sector, which is deteriorating month by month. In September, FFB revised its forecasts for a decrease in production volumes in this area to-5.1%and now this number has increased to-7.8%Among the few positive news items was the information about the increase in activity in the area of improvements and maintenance, which led to some concern among professionals throughout the year. This indicator has been improved to+2.6%, having increased by0.6compared to the September forecast; last year it was2.1%.

90,000 jobs are at risk.

“The third quarter turned out to be better than expected, and the fourth quarter should also follow this trend,” noted representatives of FFB.

The French Construction Federation has confirmed its forecasts for 2025, according to which there will be a loss over the next two years.150,000 jobsand also the loss of revenue in the amount of14 billion euros“We are descending into the abyss faster than we expected. But for now, we believe that this abyss is not deeper than it was back then,” summarizes the director of economic, financial, and international affairs at FFB in metaphorical terms.Loik Shapo.

Decline in the energy renovation market

“A disaster awaits us for at least the next two years,” confirms the union president.Olivier SalleronIn addition to the sharp decline in the housing construction sector, he also expresses concerns about a possible slowdown in the thermal renovation market due to a revision of the operational mechanism.MaPrimeRénov“Some credit institutions have informed us that their information systems will only be ready in the spring. This is not just a simple change of figures; it’s a change in the method of calculating loans,” he adds.Loik Shapo.