• Highlights

• In 2023, Brazil had 165.8 thousand construction companies, which employed 2.5 million persons. In the year, those companies paid R$89.6 billion in salaries.
• The value produced in incorporations, works and/or construction services by the construction sector reached, in nominal terms, R$484.2 billion, being R$461.6 billion in works and/or services and R$22.6 billion in incorporations.
• Between 2014 and 2023, Specialized services for construction registered the only increase of share in the value of works among segments, from 17.8% to 24.0%, its highest parcel in the time series. The share of Building construction decreased from 43.9% to 39.8%, whereas that of Infrastructure works retreated from 38.3% to 36.3%.
• In 2023, the number of persons employed in the construction industry fell 14.7% (-425.4 thousand) against 2014 (2.9 million). They were 2.3 million in 2022.
• In 2023, the public sector registered an increase of 1.2 p.p. in the share of value of works in relation to 2022, representing 31.6% of the total.
• In 2014, eight major companies accounted for 8.6% of the total value of works of the sector, whereas this percentage dropped to 3.3% in 2023, the lowest value in the time series started in 2007.
• Concerning the Federation Units, a few changes occurred in the first positions of the ranking in terms of value of works over the last ten years. São Paulo remained as the major FU in Brazil in value of incorporations, works and/or construction services. On the other hand, Rio de Janeiro lost the second position to Minas Gerais.
• The analysis of the predominance of the segments of the construction industry in the 27 Federation Units showed that 14 had Building construction as the prevailing segment, whereas the other 13 stood out by Infrastructure works. In relation to ten years ago, the segment of Infrastructure works prevailed in nine FUs.

The construction industry produced R$484.2 billion in value of incorporations, works and/or services in 2023, being R$461.6 billion in works and/or services and R$22.6 billion in incorporations. Brazil had 165.8 thousand construction companies, which employed 2.5 million persons. In the year, those companies paid R$89.6 billion in salaries. The data are from the Annual Survey of Construction Industry (PAIC), released today (22) by the IBGE.

Between 2014 and 2023, Specialized services for construction registered the only increase of share in the value of works among segments, from 17.8% to 24.0%, its highest parcel in the time series. For the other segments of the construction industry, the share in the total value of works of Building construction decreased from 43.9% to 39.8%, whereas Infrastructure works retreated from 38.3% to 36.3%.

Marcelo Miranda, an analyst of the survey, exemplifies that Specialized services for construction can be understood as painting services or installation of piping, among others, usually sublet in large projects by larger companies, as well as comments on the growth of this segment. "It can be a reflection of an increasing demand for technical expertise and highly specialized services in the execution of construction projects. Despite its growth, that segment remained ranking in the third position."

In ten years, construction industry lost 14.7% of jobs

In 2023, 2.5 million persons employed in the construction industry represented a reduction of 14.7% (-425.4 thousand) against 2014. Jobs were split in the following way: 37.6% working in Building construction; 32.8% in Specialized services for construction; and 29.6%, in Infrastructure works. In 2022, 2.3 million persons were employed in the construction industry.

"A significant change in the distribution of jobs among these sectors occurred over the last ten years. The segment of Infrastructure works lost space, changing from the second to the third position, whereas Specialized services for construction grew, getting closer to the segment of Building construction, which remained as the main employer along nearly the entire period," highlights Miranda.

In absolute terms, the drop of 425.4 thousand persons in the employed personnel was mainly influenced by the reduction in the number of persons employed in Building construction, which lost 273.4 thousand persons (-22.8%), though it remained as the most relevant segment in terms of employability.

Specialized services for construction was the second biggest segment in terms of employed personnel, with a total of 809.8 thousand persons in 2023, a growth of 4.0% in relation to 2014.

"Employability in the construction industry has been recovering over the last years. Between 2019, the pre-pandemic year of COVID-19, and 2023, the number of employed persons increased by 559.5 thousand persons, or 29.4%, highlighted by the segment of Specialized services for construction, which hit its highest value in the time series," points out the analyst.

Companies of Infrastructure works were larger and paid a higher average salary

In 2023, the average number of workers in the construction industry was 15 persons per company, who earned, on average, 2.1 minimum wages (s.m.) per month. Companies of Infrastructure works were larger (43 employees on average) and paid the highest average monthly salary (2. 6 s.m.) among the three major segments. However, it registered the biggest drop in the average salaries paid over the last ten years, considering the value of 3.7 s.m. in 2014.

Specialized services for construction recorded the lowest average number of workers (ten persons) and a monthly salary of 2.0 s.m. As the segment with the highest number of employees, Building construction reported 14 employed persons per company, earning 1.9 s.m. on average.

"After the reduction in the average salaries paid from 2014 onwards, mainly influenced by the reduction of this indicator in the segment of Infrastructure works, the average salary reached a relative stability over the last four years," points out the PAIC analyst.

Share of public sector in value of works grows in 2023, yet it remains below that in 2014

In 2023, the public sector registered an increase of 1.2 p.p. in the share of value of works in relation to 2022, representing 31.6% of the total. The increase was mainly leveraged by the segment of Building construction, in which the share of the public sector hit 24.7% in 2023, an increase of 5.0 p.p. in relation to the previous year.

"It is important to highlight that, in the analysis of the last ten years, the public sector lost space, changing from a share of 33.9% in 2014 to 31.6% in 2023, highlighted by the segment of Infrastructure works, which lost 5.2 percentage points in the period," points out Miranda.

Concentration hits the lowest rate in the time series

The degree of market concentration is measured by the indicator "concentration ratio of order 8" (R8), which calculates the percentage of the total value of incorporations, works and/or services produced by the eight largest companies of the sector. In 2014, eight major companies accounted for 8.6% of the total value of works of the sector, whereas this percentage dropped to 3.3% in 2023, the lowest value in the time series started in 2007.

Between 2014 and 2023, the R8 indicator in the segment of Infrastructure works reduced from 21.1% to 6.4%, the lowest one in the time series as well. In Building construction, it changed from 7.2% to 6.7% and, in Specialized services for construction, it increased from 4.3% to 6.2%.

Southeast Region records a drop in the share of the value of construction in ten years; South grew the most

The share of the Southeast Region in the value of incorporations, works and/or construction services fell from 52.4% to 49.8% over the last ten years.

On the other hand, the South Region registered the biggest increase in the share of value, of 3.4 p.p. between 2014 and 2023, reaching 16.2% of the total. Despite the drop of 0.5 p.p. in ten years, the Northeast Region remained in the second position of the regional ranking, hitting 18.1% of relevance.

The North and Central-West regions also maintained their positions, though a reduction of 0.4 p.p. has been noticed in the North Region and stability in the Central-West Region, which closed 2023 with a share in value produced of 6.5% and 9.4%, respectively.

In terms of employment, the Southeast Region increased its share from 47.7% to 50.6% of the total number of persons employed in Brazil, followed by the Northeast (19.1%), South (15.3%), Central-West (9.1%) and North (5.9%) regions.

Concerning the Federation Units, a few changes occurred in the first positions of the ranking in terms of value of works over the last ten years. São Paulo (R$121.0 billion) remained as the main FU in Brazil in value of incorporations, works and/or construction services. On the other hand, Rio de Janeiro (R$33.4 billion) lost the second position to Minas Gerais (R$54.6 billion).

The analysis of the predominance of the segments of the construction industry in the 27 Federation Units showed that 14 had Building construction as the prevailing segment, whereas the other 13 stood out by Infrastructure works. In 2014, Infrastructure works prevailed in nine FUs.

More about the survey

The Annual Survey of Construction Industry (PAIC) is an important source of statistical information on the business segment of construction industry in Brazil. The main variables covered by the survey are employment and salaries; revenue, costs and expenditures; value of incorporations, works and/or construction services; types of works and/or construction services; construction products. PAIC brings data for Brazil, Major Regions and Federation Units.