Modelling labour demand at project level: An empirical study in Hong Kong

Chan, A P C; Wong, J M W and Chiang, Y H (2003) Modelling labour demand at project level: An empirical study in Hong Kong. Journal of Engineering, Design and Technology, 1(2), pp. 135-150. ISSN 1726-0531

Abstract

The construction industry plays a significant role to the economy of Hong Kong not only in terms of output but also the employment. The sector, however, has been severely hit by the economic downturn in recent years resulting in serious unemployment. Employment planning becomes one of the critical aspects for the recovery of the economy. The main objective of this paper is to establish a labour demand model for the Hong Kong construction industry. The unique characteristics and the current conditions of the construction labour market are reviewed. Regression analysis based on 123 construction projects was used to compute the relationship between expenditure and site workers employed. The best predictor of average labour demand of construction projects in Hong Kong is found to be DL = 463 C 0.934, where DL is the actual labour demand in man‐days, C is the final cost of contract in millions. The labour demand‐cost relationship can be applied as a manpower forecasting model to estimate the total labour required for a given type of project. The developed model enables a more reliable and accurate planning of manpower requirements in the construction industry.

Item Type: Article
Uncontrolled Keywords: manpower planning; labour demand-cost relationship; regression model; construction projects; Hong Kong
Index terms: employment, Hong Kong, recovery, regression model, forecasting, construction industry, modelling, estimate, regression analysis, empirical study, construction labour, workforce planning, unemployment, construction project
Subjects: research methods, management, production management, Geography, statistical analysis, industry analysis, operations management, analytical methods, financial and cost management, prediction and forecasting, economic analysis
Topics: Site Management, Human Resources, Cost Management, Business Strategy, Engineering Principles, Geographical Context, Project Management, Research Practice
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here