Europe’s construction sector is highly labor-starved. An estimated 44% of all shortfalls in the region are for jobs in construction, according to a new report by the EURES of the European Labour Authority. Construction employment has made up most of the lost ground over the last decade since the financial crisis of 2008 and hasn’t recovered to peak levels yet, and demand continues to climb. Here are the five key reasons why there is a labor shortage in Europe’s construction sector.
1. An Aging Workforce
One major problem that the construction sector is facing is the need for more young workers to enter the field after retirement. Ten percent of the construction workers in Sweden will retire by 2028. In Belgium, 20,000 skilled workers will leave the industry by 2027. All in all, by 2022 and until 2035, it is estimated that 4.1 million construction workers will retire in the EU. For their replacement, an extra 4.2 million new workers will be needed.
The industry is now facing a severe talent gap because a vast number of older workers are leaving while only a limited number of new people are joining. As long as it does not get more young workers, construction companies may not be able to satisfy the growing demand.
2. Negative Image and Difficult Working Conditions
For years, construction as an industry has had an image problem. Many view the kind of work in the open for more than half the day, at high temperatures and under the sun, with others even facing exposure to chemicals. This would discourage some prospective workers, especially the younger generations, from joining the profession. Climate change also presents other challenges, mainly higher temperatures and increased UV exposure, which means open work may not be desirable.
Public opinion of the construction industry still has not become much brighter despite enhanced working conditions in construction, like safety measures, higher wages, and so-called modern technologies. The youth are far less interested in the construction industries. Levels of subcontracting and self-employment are extremely high in the industry, and this often results in unstable employment conditions. This instability makes construction less appealing.
Additional Read: EU Jobs Crisis Looms: Employers Say Job Seekers Lack Required Skills
3. Fragmented Employment Structure:
This leads to a very complex employment structure, with many levels of subcontractors and an enormous number of self-employed people, coupled with the existence of temporary employment. Such a fractured nature presents a challenge to establishing appropriate working conditions or even stable jobs. In short, an overwhelming number of workers are engaged by small and medium enterprises that lack the means to attract new blood or improve their working conditions.
This structure results in a lot of uncertainty for workers and tends to make construction jobs less stable than in other areas. Unstructured activities mean it is hard to recruit and retain experienced workers in construction effectively.
4. Low Utilization Of The Workforce, Especially Women
It has not tapped into the full potential of labor at its disposal. Women, for example, make up only 10.4% of the construction workforce in the EU, while all other sectors have a workload of 46.2%. This is a low number even within the past decade.
Some of this can be attributed to the aspect that construction work is “masculine,” poor work-life balance and protective gear is not designed for women. Apart from this, construction is highly reliant on foreign labor, as 855,000 workers were posted abroad in 2021 across the borders within the EU. Though foreign workers fill short-term needs, they do not solve the long-term workforce shortage within Europe.
5. New Skills Needed for Digital and Green Transitions
Even new technologies and environmental goals change the construction sector. For example, the European Green Deal demands major renovations in order to make buildings efficient in energy consumption. The expected number of jobs created between 2030 and the present time is 204,000, yet the key required skills are highly in demand.
Technologies that include Building Information Modeling, drones, 3D printing, and mobile devices, amongst others, make work in construction easier and more appealing. However, adoption has been slow, and most companies still lack investment in training their staff to use the tools. Upskilling will form the basis of meeting future needs.
Wrapping Up
By matching qualified workers with companies in need, Dynamic Staffing Services can be extremely helpful in resolving Europe’s labor shortage in the construction industry. Dynamic Staffing Services guarantees a qualified and diversified staff through worldwide sourcing, targeted recruitment, and customized training initiatives. We aid in closing the skills gap and promoting sustainable growth in the European construction sector by emphasizing employment security and skill development. To learn more about us, you can contact us at enquiry@dss-hr.com or +91-11-40410000.
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