Building success: the impact of talent recruitment on the growth of the construction industry

Purpose In today’s digital era, talent recruitment can help address the growing shortage of skilled labor in the construction industry and promote sustainable growth. While existing research has explored the association between talent acquisition and local labor productivity or economic progress, the impact on construction growth deserves further study. This study aims to (1) explore the influence of talent recruitment on the growth of the construction industry and (2) analyze whether different regional characteristics shape the differential impact of talent acquisition on construction growth. Design/methodology/approach This research employs a quantitative approach, focusing on 35 major cities in China. A panel data regression model is utilized to analyze annual data from 2013 to 2018, considering variables like the construction talent recruitment index, value added in construction, gross regional product per capita and others. The study also examines regional heterogeneity and conducts robustness tests to validate the findings. Findings The results reveal a positive and significant correlation between talent recruitment and construction industry growth. This correlation is more pronounced in economically advanced and infrastructure-rich regions. The study also finds that factors like capital investment, educational attainment and housing prices significantly contribute to industry growth. Talent recruitment not only transforms local labor market dynamics but also drives demand for construction services, promoting industry growth through economies of scale. Originality/value This research constructs a new measurement for talent recruitment and provides new insights into the pivotal role of talent recruitment in the sustainable growth of the construction industry. It underscores the need for construction firms to tailor talent acquisition policies to their specific circumstances and regional developmental conditions. The findings offer practical guidance for driving regional growth within the sector, emphasizing the importance of talent recruitment as a key yet previously underappreciated factor in industry development.