Study On Construction Industry Labor Cost Rising Trend And Coping Strategies

As a typical labor-intensive industry, there are plenty of labor workers in the construction industry. However, in recent years, the labor cost has been rising rapidly, which poses a serious challenge to the labor-intensive construction industry. So, focused on the rising labor cost, this thesis gives a research into the rising status, the rising effcet, the rising causes, the resing trend and the development strategies of the construction industry under the situation of the rising labor cost, hoping to provide some reference for the industry going out of the labor cost dilemma.Firstly, the current situation of China's construction industry labor cost is analyzed in perspectives of the average wage of employed persons in urban units and migrant peasant-workers, as well as the proportion of the labor cost in the construction and installation cost, which shows that the average wage of employed persons in urban units in construction industry is at a low level among the all sectors, while the average wage of the migrant peasant-workers in construction industry is at a high level among all the migrant peasant-workers, however, whether the employed persons in urban units or the migrant peasant-workers in the construction industry, their wages have been continuing to rise. Then, the effect of rising labor cost on the construction industry is analized. The main beneficial effects are to promote the reform of construction labor employment and change of the production pattern. While the adversely affects are mainly to reduce the profit of the building corporates, boost prices of construction products, reduce the competitiveness of construction enterprises and hinder the development of the construction enterprises.Then, through the combination of literature review and expert interviews, this thesis identifies ten factors affecting the raise of construction industry labor cost from the aspects of national macroeconomic, policies, the development of the construction industry and the labor itself. Further, the structural equation modeling is used to study the influence mechanism of these factors, which reveals that the most effective factor is the labor itself, which followed by national policies, the development of the construction industry and the national macroeconomic.Next, taking the average daily wage of 18 types of construction workers in about 30 cities as the sample data, this thesis constructs a regression prediction model for the construction labor cost, through which the future construction labor cost is predicted.Finally, the development strategies for the construction industry coping with the rising labor cost are proposed. From the government's point of view, the coping strategies canbe the followings:strenthen the reform of the employment system to promote the competition in the labor market, establish vocational skills and safety education and training system to improve the quality of employees, improve the labor employment social security system to enhance the attractiveness to the labor workers, implement the new construction industrialization to reduce the need of the labor. While from the construction companies' point of view, the coping strategies canbe the followings:raise the awareness of labor costs and strengthen the management of labor costs, establish a stable labor relations to reduce search costs, strengthen the training of workers to improve their quality, enhance the mechanization and industrialization to improve labor productivity, improve the organization and management of construction to improve construction productivity.