How EU and UK is Tackling the Construction Labour Crisis
The construction industry across Europe faces unprecedented workforce challenges, with labour shortages threatening project delivery times and increasing costs. The situation affects both large-scale infrastructure developments and residential building programmes.
Recent data from the European Federation of Engineering Consultancy Associations (EFCA), which represents engineering consultants across Europe, reveals the scale of the problem.
Board Member Roberto Carpaneto states: "In the construction and service sector, labour shortages were reported to be a limit to growth in 31% of cases in the European Union last year."
The German market illustrates these challenges. Bau Industrie, the German construction industry association that represents construction companies throughout the country, reports significant vacancy levels. Its EU Economic & Social Policy Consultant, Marius Graf, says: "In 2023, there were around 52,000 vacancies in the sector. However, there are numerous unreported vacancies, so the real figure is estimated to be much higher."
EU construction workforce retention problem
The construction industry has traditionally relied on migrant workers to fill skills gaps, an approach that today faces limitations, according to Riccardo Viaggi, Secretary General at the Committee for European Construction Equipment (CECE), which represents construction equipment manufacturers.
"Many countries, including Western Europe and Europe in general, rely on immigration to maintain their workforce,” he says. “Although it can be a sensitive topic politically, it is a recognised and necessary aspect of the workforce mix. However, once these people learn the language, they tend to leave the sector."
The problem extends beyond recruitment to retention, with workers often moving to other industries that are able to offer improved conditions or career progression. This creates a cycle of continuous recruitment and training needs.
Tech adoption and skills development needs
The construction sector must adapt to technological changes while addressing labour shortages. This requires new approaches to training and skills development.
Lena Guyon, Policy Officer for Social Affairs at FIEC, the European Construction Industry Federation representing construction enterprises, emphasises the need for coordination.
"There is a need for not only companies but also the government and educational system to work together to improve training centres,” she says. “Teachers should also be trained to use new technologies to ensure that students receive the proper training."
The industry recognises the need for fundamental changes in its approach to workforce development. Viaggi adds: "If we want workers to stay, we need to address the issue of diversity and inclusion in the workforce. It's not enough to just improve the industry's attractiveness and hope that people will come."
Current initiatives focus on modernising training programmes and creating clear career pathways. This includes integration of new technologies and sustainable construction methods into training curricula.
Karen Plumbley-Jones, Managing Partner at law firm Womble Bond Dickinson, which provides legal services to the construction sector, outlines the path forward: "Governments and education institutions need to collaborate, encourage developing the skill sets needed for the future of construction – including robotics, materials innovation, green technology, data expertise, smart cities and more."
