Housing construction faces growing labor shortage

This shortage threatens not only the growth of the sector, but also global economic development and the ability to meet essential societal needs such as accessibility to housing and infrastructure.

Autopsy of an industry to be saved

The construction jobs crisis is not the result of a single problem, but of several combined. At the heart of the problem is a generational divide: according to recent data from the PlanRadar Global Housebuilders Survey[2], which surveyed 669 housebuilders in 17 countries, 63% of respondents say the sector is simply no longer attractive to young people. With government support for apprenticeships having declined, coupled with a decline in the number of new applicants to the construction sector, this is creating a gap that current systems are unable to fill.

It should be noted that the aging of experienced profiles and their non-replacement (mentoring system, knowledge transfer, etc.) represents a major problem, particularly for SMEs. 20% of the companies surveyed report an aging workforce and do not currently have a replacement. Often, companies only realize this once the employee has retired. It's already too late.

Finally, in many countries, some professionals (5% of home builders) believe that restrictive immigration policies restrict access to employment for certain skilled profiles and talents. In sectors where international subcontractors are common, these policies limit flexibility at a time when every available worker counts.

Explanations vary depending on the country, market, and culture. In France, nearly 60% of respondents attribute the talent shortage to a lack of apprentices and young employees, while approximately 25% attribute it to the over-age workforce.

Given these findings, there is no single solution to solving the problem. The sector must work on several fronts: strengthening its appeal to new generations, retaining experienced workers longer, and facilitating the integration of international talent. Because if nothing changes, the shortage will only worsen.

Immediate actions and long-term strategies

When you consider that 75% of construction companies report that labor shortages are negatively impacting their deadlines, you can grasp the scale of the problem. In France, this figure reaches 87%. With growing demand and increasingly tight deadlines, the challenge is no longer just to do more, but also to do more with fewer people.

The first solution is medium- to long-term. It involves a major overhaul of the attractiveness of the construction industry and the creation of new training programs. The goal is to attract young talent, inspire enthusiasm, and showcase the remarkable achievements and careers of these professions. It will take time, but this corrective action is more than necessary for the survival of the industry. Instead of waiting, we must act to compensate for the labor shortage.

Digitalization isn't just addressing short-term labor shortages; it's redefining how the construction industry operates. It's establishing a solid foundation for growth and integrating young talent, familiar with the use of these technologies. Project management platforms streamline communication and reduce time wasted on coordination. Efficiency is becoming the engine that drives progress.

It's not about working harder, it's about working more efficiently. When teams are coordinated, information flows smoothly, and reporting is no longer a waste of time, companies can take on more projects and scale sustainably. Even small day-to-day efficiency gains quickly add up in an environment where every hour and every decision counts.

And perhaps most importantly, digital ways of working are bringing construction closer to the expectations of the next generation of professionals. If the sector wants to attract new talent, it needs to offer modern tools, clearer processes, and roles that are less about chasing updates and more about solving problems.

Labor shortages are here to stay. But with the right approach, the industry doesn't have to stand still. By improving the way we work today, we build resilience for tomorrow and unlock the ability to grow, even in a tight market.

[1] McKinsey & Company. (2024). Delivering on construction productivity is no longer optional. Retrieved from https://www.mckinsey.com/capabilities/operations/our-insights/delivering-on-construction-productivity-is-no-longer-optional

[2] PlanRadar. (2024). Global Housebuilders' Survey 2024: https://www.planradar.com/fr/ebooks/etude-construction-logement-monde/

Tribune by Álvaro Vega, Regional Manager France, Spain, Italy and Latin America, PlanRadar (LinkedIn).