Temporary unemployment rates have climbed to alarming levels within Belgium's construction and manufacturing sectors, according to a recent study by Acerta, raising concerns about job stability and economic health. The report indicates construction reached 4.73% for temporary unemployment, the highest it has been in three years, and the manufacturing sector followed closely with nearly 4.5% of hours lost due to the same issues.
This concerning trend emerges against the backdrop of broader economic challenges, including record job cuts due to collective layoffs. Many firms have reported significant reductions to their workforce, which is adding pressure to the country’s economic recovery. Acerta’s findings were derived from data covering over 250,000 workers across 40,000 private companies, emphasizing the severe impact these sectors are facing.
Laura Couchard, legal expert at Acerta, pointed to various factors exacerbated by market conditions: "We can assume the increase of labor costs and the rise of material costs both impacted orders". The construction industry isn’t just facing economic pressures but also practical challenges like weather. Couchard elaborated, "When it’s too hot or when there’s frost, people cannot work for safety reasons." Such interruptions have risen due to 2024’s extreme weather events, considered some of the worst experienced recently. "2024 has been one of the most challenging years in terms of weather," noted Arnaud Delmarche, HR director for the group Thomas & Prion which employs around 3,200 workers, including 2,100 manual laborers.
Delmarche outlined the pressure this situation has put on the construction sector, citing effects stemming from the war in Ukraine and impacts from the COVID-19 pandemic. He believes these factors contribute to difficulties securing permits for construction projects, making it tougher for businesses to regain momentum. "This is quite the brake for the sector, and it should impact temporary unemployment rates," Delmarche commented. He expressed optimism about his own company, which has not heavily relied on temporary unemployment tools outside of weather-related issues.
Meanwhile, the metallurgy and manufacturing sectors present different challenges. An increase in international competition, fluctuated energy prices, varying raw material costs, and even technological advances leading to reduced need for manpower all contribute to the rising rates of temporary unemployment. While, historically, manufacturing is used to operating with flexibility, this latest situation has posed new hurdles.
Despite the negative outlook for construction and manufacturing, other sectors are observing positive recoveries. The horeca industry, which was drastically hit during COVID-19, has bounced back to notable performance levels. Acerta reported temporary unemployment rates within the horeca sector fell to 0.52%, slightly dipping below the pre-crisis figure of 0.54% from 2019, which signifies promising recovery signs.
On the other hand, the logistics sector continues to lag, struggling to return to 2019 levels. Although its temporary unemployment remains relatively contained at 1.28%, stability is key as the industry grapples with post-pandemic challenges. "We are seeing some good news, but there remains much work to do to efficiently navigate sector-wide recoveries," Acerta noted.
Much still lies ahead for Belgium as it strives to create solutions to keep unemployment down across all industries. With increasing pressures on construction and manufacturing, well-informed strategies must be employed to address these economic challenges effectively. Balancing costs, improving working conditions, and securing necessary permits will be pivotal to rebuilding the industry’s workforce.