Colombia faces a construction sector crisis, losing 50,000 jobs from February 2023 to 2024, the most significant drop in the industry.
This downturn has sparked debates over government policies, especially concerning Social Interest Housing (VIS), under President Gustavo Petro’s leadership.
Statistics reveal a decline in the construction workforce from 1.525 million to 1.475 million within a year, raising alarms about the sector’s health, a key economic engine.
Sandra Forero, a former Camacol president, criticized the government’s shift from the “Mi Casa Ya” program, which significantly impacted sales and project initiations in the VIS.
They were reduced by more than 40% and nearly 50%. This decision has jeopardized employment in the sector.
The construction industry, a catalyst for 32 productive chains and 54% of the economy, saw over 700 companies building VIS in more than 350 municipalities.
However, project cancellations have piled up, straining builders with unsold inventory.
Forero also refuted Housing Minister Catalina Velasco’s claims that subsidies benefited the middle class.
A University of Los Andes study showed that 75% of “Mi Casa Ya” subsidies went to low-income households.
José Manuel Restrepo, former Finance Minister, highlighted that rising unemployment signals an economic slowdown and stressed the urgency of a recovery plan for vital sectors.
Luis Fernando Mejía of Fedesarrollo observed that unemployment climbed to 11.7% in February, marking a persistent labor market decline since August 2023.
Maria Claudia Lacouture of Amcham, Colombia, emphasized the critical need to create jobs in commerce and professional services to revive the economy.
From December 2023 to February 2024, Quibdó, Riohacha, and Florencia had Colombia’s highest unemployment, while Manizales, Barranquilla, and Medellín reported the lowest, showcasing economic disparities.
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