Paraguay's construction sector has emerged as a key driver of economic recovery, generating 221,369 jobs in 2024 thanks to proactive government-led public works projects. According to the latest data from the National Institute of Statistics (INE)'s Continuous Household Survey (EPHC), this represents a 5.7% increase compared to 2023, resulting in the creation of 11,861 new jobs.
The Ministry of Public Works and Communications (MOPC) assessed that this growth in the construction sector overcomes the sluggishness of the previous year and marks a remarkable achievement. In 2023, the sector faced difficulties with a decrease of 7,492 jobs. However, in 2024, it successfully recovered these losses and employed 4,369 more people than the employment level in 2022.
In addition to the increase in employment, the construction sector also showed positive changes in the income level of its workers. According to INE data, the average income in this sector rose by 7.7% compared to 2023. This significantly exceeds Paraguay's annual inflation rate of 3.8% in 2024, indicating an improvement in the real purchasing power of construction sector workers.
The remarkable growth in the construction sector is attributed to the major infrastructure projects actively promoted by the Ministry of Public Works and Communications (MOPC). In particular, the resumption of previously delayed projects and the active promotion of new construction projects have acted as strong catalysts for job creation, according to the analysis.
This can be interpreted not merely as a natural recovery following the economic slowdown of 2023, but as a direct effect of the government's policy focused on strategic national infrastructure investment.
Bright Prospects for 2025: Continued Growth and Labor Market Revitalization Expected
The outlook for Paraguay's construction sector in 2025 is also very positive. Considering the various ongoing projects and the new business plans announced by the Ministry of Public Works and Communications (MOPC), construction activity is expected to maintain its growth trend.
If the growth momentum of 2024 continues steadily, the construction sector is likely to play a crucial role in revitalizing Paraguay's labor market in 2025. This is expected to significantly contribute to the country's economic recovery and positively impact the economic well-being of numerous households directly and indirectly related to the construction industry.
The Paraguayan government is emphasizing infrastructure investment as a core strategy for national economic development and is actively promoting public works in various fields such as roads, bridges, and housing construction. These efforts are projected to have positive ripple effects not only on the growth of the construction sector but also on the development of related industries and job creation. Furthermore, the government is reportedly continuously pursuing policies to enhance transparency and efficiency in the construction sector and is exploring various incentives to encourage private sector participation.
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