Economic Benefits of Construction Industry

Construction work, in any form, in any country, is a sign of a thriving economy. Construction may involve building of factories, etc. However, this work will be on a limited scale. Large-scale construction, covering the entire country, will only be when building new homes. People are eager to own homes, and the mortgage scheme has helped them in the process. It means money is not stored in any one place, but is being put to productive use, giving a boost to the economy of the country.

Creation of Jobs

Any construction involves a huge amount of work, especially civil work. Constructing homes of different types, for various classes of people, involves the employment of a huge work force of different types of workers. A good percentage of them consist of skilled workers like masons, carpenters, electrician, HVAC mechanics, etc. The potential for employing all these people continuously has become possible with a booming business of house construction. Home mortgage loans have encouraged this process to gain momentum and are sustaining it.

It is not only in the case of skilled workers that the employment opportunities are good. Even white-collar workers are in great demand. Majority of home construction is done through mortgage loans. Mortgage process means going through a proper legal process. Qualified and experienced staff in the office is required for carrying out this work. Intermediaries, who help in mortgage negotiations, are also able to make a good living by using their negotiating skills.

Revenue Collection

Any improvement in the economy of the country is naturally reflected in the revenue collection of the government. House construction involves many people, who earn money, and pay taxes to both State and Federal governments. Greater the tax collection better will be the social benefits for the people of the country. Increased tax collection also involves the creation of more jobs in the Government Revenue department. Thus, job creation and revenue collection becomes a chain process.

Some studies in the matter of tax collection have brought out staggering results. On an average, every new home that is built brings revenue of nearly $90,000 for the Federal and State governments, who share it on a nearly 3:1 ratio. One can imagine the collection, if the estimated house construction of nearly 2 million homes is carried out in a year. The present estimate shows that with the type of work going on, millions of people will be working, earning money and contributing to the economy of the country.