Is the Construction Industry Seeing a Lasting Boom?

The construction industry has seen some major shifts in recent years, following on from the growth in AI, unstable government policies and long-lasting labour gaps.

Demand for construction-related roles is rising across Europe, with more people turning towards the industry every day.

As more investments are being funneled into construction projects, the demand for the sector is high, but the problem lies with not enough people to take on the roles.

The construction demand boom

According to LinkedIn's annual 'Jobs on the Rise' list, demand for construction jobs is increasing across Europe. There are mass calls for land and building managers, safety engineers, building inspectors and property directors. 

The past year has seen a significant increase in demand for the construction sector, with more governments working to fix the housing crisis and putting more investments into building new houses. By 2029, the UK wants to create 1.5 million new houses, but the sector lacks the manpower to meet these demands.

The European Commission, the European Investment Bank (EIB) and individual national banks will be putting money towards new housing projects, ensuring affordable housing is built following changes to state aid rules. With renewed investments and more integration with AI to ease some of the labour, the construction industry may see a sector-wide transformation, as long as the jobs can be filled.

"The housing crisis is not a European inevitability. With this new strategy, Europe is making a clear choice: to simplify, invest and innovate in order to build faster, more sustainably and at lower cost," explains Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy at the European Commission. 

"By modernising the construction sector, removing administrative bottlenecks and turning the Single Market into a true industrial accelerator, we will, together with the Member States, transform a fragmented sector into a driver of competitiveness, social cohesion and European sovereignty."

An anticipated revival

Following a prolonged 'slump' period, the industry is looking towards a re-emergence, with expectations of stability and growth over the upcoming years. With ongoing large investments into the sector and an increase in residential construction projects, many are anticipating a revival of European construction. 

Construction is beginning to harness AI and other digital technologies across its operations, witnessing improvements to cost, speed and project execution quality. AI agents are finding value across engineering, with capabilities of coordinating complex tasks. Through using these systems in their planning, construction teams can develop clear roadmaps and apply to great scale.

Activity across the UK, Netherlands and the Nordics shows an optimistic outlook for construction, with ongoing growth across the infrastructure sector and investments into housing proving a demand for the industry's revival.

“After a difficult few years, Europe’s construction market is pivoting back to growth from 2025 through 2028, with early momentum already visible in several countries,” said Marc Jeker, partner in Bain & Company’s Infrastructure, Construction and Building Products practice.

“Resilient infrastructure, a revival in new residential building, and selective strength in office projects are set to drive the upswing – helped by ECB rate cuts, pent‑up housing demand, and clearer public‑program agendas."

Investing in the workforce

Funding, however, was only part of the standstill for the industry. Following years of underinvestment, there is a widening skills gap across the sector. Moreover, less young workers have historically entered the workforce, meaning the individuals with skills and thorough understanding of the industry are ageing out.

As well as investments into projects, there needs to be large-scale investments into the sector as a whole, encouraging new workers to enter the industry and training them enough so they want to stay and feel capable of doing so. Without opportunities for upskilling and a lack of clear career progression, there is little desire for new workers to enter the industry. 

Though we are now seeing an increase in projects, therefore an increase in demand, the construction industry is in need of workforce transformation in order to meet this demand and ensure the sector remains strong for future endeavors. 

"There’s still a severe and growing skills shortage, particularly at trade and mid-management levels. An ageing workforce, fewer young people entering the trades, and years of underinvestment in training have created a gap that can’t be filled overnight," explains Maria Moulton, Director of Willow Consulting on LinkedIn.

"We’re seeing strong demand for experienced site managers, supervisors, estimators and compliance-aware trades, not just labour, but capability. This is why retention, upskilling, and clearer career pathways are becoming just as critical as recruitment.

"Construction doesn’t have a demand problem; it has a capacity problem. Addressing that will determine whether the sector can realistically meet housing, infrastructure, and net-zero targets."

The industry is seeing a steadily-rising increase in momentum, but to ensure it does not burn out before it can come to fruition, there needs to be investments into the workforce itself.