The construction sector in Cyprus and across the European Union is experiencing one of the most severe labor crises in recent decades. The shortage of workers is no longer a temporary issue and is increasingly viewed as a structural challenge that could slow economic growth, delay infrastructure projects, and hinder the development of the real estate market.
Chronic Labor Shortages and Industry Concern
According to the Cyprus Federation of Building Contractors (Oseok), the shortage of workers in the sector has persisted for several years and continues to deepen. Representatives of the federation note that demand for labor consistently exceeds supply, despite near-full employment in the national economy. The lack of both skilled specialists and unskilled workers is felt particularly strongly.
At a recent meeting with Minister of Labour Marin Mousiuttas, federation representatives stressed that the problem is no longer temporary. It has become a systemic crisis requiring comprehensive solutions—from labor market reform to a reassessment of migration and education policies.
Why Construction Lacks Workers
One of the key reasons is declining interest among local residents in construction-related professions. Young people are increasingly choosing careers in services, technology, or office-based jobs. At the same time, a significant share of the current workforce is approaching retirement age and can no longer meet the modern demands of the industry.
Today’s construction sector is increasingly linked to digital technologies, sustainable materials, and energy-efficient solutions. However, vocational education systems are not keeping pace with the need to train specialists with the required skills in sufficient numbers. As a result, the market faces a shortage of workers capable of operating under modern standards and technologies.
Decline in the Inflow of Foreign Workers
An additional factor is the reduced availability of foreign labor. Migration flows that previously compensated for workforce shortages have declined noticeably. Competition for workers between sectors has intensified, while working conditions in construction often compare unfavorably with other industries.
According to Oseok, this is already leading to delays in private developments and infrastructure programs, rising construction costs, and a decline in the sector’s investment appeal.
European Context: A Problem Beyond Cyprus
A similar situation can be observed across Europe. More than 13 million people are employed in the EU construction sector, yet it has long been among the industries facing acute labor shortages. European Commission data indicate that the deficit affects over 40 professions, including construction, transport, and healthcare.
Roxana Mînzatu, Vice-President of the European Commission for Social Rights and Employment, recently stated that four out of five European companies struggle to find workers with the required qualifications. Rapid technological advancement, automation, and population aging are further widening this gap.
Demographics, Technology, and New Challenges
Experts note that Europe loses around one million workers each year due to demographic decline. At the same time, demand is growing for new skills related to digitalization, robotics, and green construction. According to analysts, education systems are simply unable to adapt quickly enough to these changes.
Additional pressure comes from large-scale EU investment plans, including infrastructure modernization and defense projects, all of which require significant numbers of qualified workers in construction and related sectors.
Searching for Solutions and New Initiatives
In response to the crisis, the European Union has launched the Skills Union initiative, aimed at developing vocational training, reskilling, and labor mobility. Programs such as BUILD UP Skills, supported by the LIFE fund, also remain active and have already helped tens of thousands of specialists upgrade their qualifications in energy-efficient and sustainable construction.
In Cyprus, representatives of the construction sector insist on the need for a comprehensive approach. This includes faster procedures for attracting foreign workers, updating vocational education programs, and closer cooperation between the state, businesses, and educational institutions.
As experts emphasize, the labor shortage problem has no single owner. It requires joint efforts from all stakeholders—from public authorities to employers and workers themselves. Without this, the construction industry risks facing even more serious constraints in the coming years, with consequences for the country’s economy as a whole.