Examining the Shortage of Skilled Labor in Selected Building Construction Projects within Kathmandu Valley

Abstract

The construction industry in Nepal faces a critical shortage of skilled labor, which adversely affects project delivery, quality, and cost. This study examines the causes, effects, and mitigation strategies associated with skilled labor shortages in selected building construction projects within the Kathmandu Valley. Grounded in Human Capital Theory and Labor Market Theory, a mixed-methods approach was adopted, combining a structured questionnaire survey of 101 respondents across ten large-scale building projects with Key Informant Interviews involving five seasoned construction professionals. Principal Component Analysis identified five principal cause components Personal Factors, Developmental Factors, Workplace Factors, Conflicts, and Employment Factors explaining 54.54% of the total variance. Similarly, four effect components Technical Issues, Health and Wealth Issues, Managerial Issues, and Firm-level Managerial Deficiencies accounted for 62.97% of the variance. The study further identified ten effective strategies through qualitative analysis, with investment in training and development ranked highest (RII = 0.84). Comparison with related studies on labor dissatisfaction and compliance in Nepalese construction reveals consistent patterns, particularly regarding delayed payment, unsafe working conditions, inadequate compensation, and gaps in Labor Act awareness. The findings provide actionable insights for policymakers and industry stakeholders.