Review of the Construction Labour Demand and Shortages in the EU

Belinda Brucker Juricic,Sasa Marenjak,Mario Galic

doi:10.3390/buildings11010017

Abstract

This paper reviews the recent literature on skill and labour shortages in the labour market with special emphasis on the construction sector in the European Union Member States, foreseeing the Construction 4.0 era. The free movement of people is one of the rights of all citizens of the EU which also includes the free movement of workers. Labour shortages in the EU are expected to increase in the future due to a declining population and an ageing workforce. In order to recognize and forecast labour shortages, EU Member states use a variety of instruments but they do not answer as to whether it is possible to use migrant labour to appease those shortages. There are several systems used to classify labour shortages in the EU Member states. Most of the countries classify labour shortages in relation to different sectors or occupation groups as well as by skill levels, but in some Member States, classification is made according to the type of employment. Instruments used to measure labour shortages significantly differ from country to country. Several criteria are used for creating lists of shortage occupations and most of the criteria include demand side and supply side criteria. A majority of the Member States are facing labour and skill shortages in various sectors and the construction sector is not an exception. As total employment in the construction sector decreased, so did the share of employed migrants. Labour shortages in the construction sector can be eased by the availability of a labour supply willing to accept unqualified and low-paying jobs. The construction sector seeks low-, medium-, and high-skilled individuals and is most likely the sector where most of the incoming migrants will be working, which has an impact on the development and implementation dynamic of Construction 4.0.

Highlights

The digital and information technology revolution, which we have been witnessing and contributing to for the past few decades, has arguably a significant impact on most industries and technologies
A clear focus on the development of automated processes and operations can be traced in most recent scientific studies and research. This focus and development trend in the construction industry is known as the era of Construction 4.0, which holistically refers to the architecture, engineering, construction, and facility management industry (AEC/FM) [1]
The articles processed and analysed in this review paper discuss the topic on labour migration problems, labour shortages and skills in the construction sector globally and at the EU level, as well as at the level of individual countries, with a focus on articles published in the last five years (2015–2020)

Summary

Introduction

The digital and information technology revolution, which we have been witnessing and contributing to for the past few decades, has arguably a significant impact on most industries and technologies. This study aims to provide a baseline for the strategic and comparative implementation of Construction 4.0 in the EU which is noted to be simultaneously motivated and constrained by the problem of long-term construction workforce shortages and increase of workers’ skills mismatch. In this way, the remainder of this paper is organized as follows. The final part of the paper consists of a discussion and conclusions of the findings in the study

Methodology

Labour Migration in the EU

Labour Shortages Assessment in the EU

Classifying and Measuring Labour Shortages in the EU

Labour Shortages in the Construction Sector in the EU