Unveiling the Shocks of Economic Reforms on Nigeria Construction Labor Market

Nigeria's economy depends heavily on the construction sector, but little is known about how recent economic reforms such as the elimination of fuel subsidies, the unification of currency rates, and tax restructuring directly affect the dynamics of the labor market in this sector. To close this gap, the study used a validated questionnaire (Cronbach's Alpha = 0.936) to poll 217 professionals in the construction industry to record changes brought about by reform. Strong agreement (mean = 4.01–4.23) was found in descriptive data regarding acute skilled worker shortages, diminishing labor demand, and rising operating costs. Additionally, substantial connections between reforms and labor market outcomes were validated by Pearson correlations (r = 0.705–0.790, p < 0.01). Significantly, lower opinions about changes in the unorganized sector (mean = 2.52) point to structural mediators and regional differences that go beyond reform initiatives. Although reforms are intended to increase macroeconomic efficiency, the study finds that they unintentionally jeopardize labor stability in the construction industry, endangering sectoral resilience and project delivery. By offering quantitative data from an emerging market setting, it theoretically enhances labor economics. It provides useful information for policymakers, suggesting targeted tax rebates (15–20%) to encourage the use of local materials, inflation-indexed salary adjustments, and the reinvestment of 10% of subsidy savings into the annual training of 50,000 craftsmen. This research offers a new, evidence-based basis for developing solutions that protect workers and promote sustainable construction growth by connecting macroeconomic reforms to sector-specific labor outcomes.