Personnel in construction: Qualified specialists are needed for reconstruction
How to improve the situation in the construction
In Ukraine, there is a general shortage of personnel. The search for employees, especially qualified specialists in construction, is accompanied by significant difficulties. After the end of the war, construction volumes are expected to increase, which will sharply raise the issue of staff deficit. Nazar Bench, owner of the Phoenix Group Investment and Construction Company, told Mind how the situation can be improved, and why it is important to work on it now.
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As a result of the war, we have the prerequisites to face a shortage of qualified workers in all sectors. The situation in the labour market, especially in the construction and real estate industries, is one of the most challenging. Even over the years of independence, skilled workers were leaving for European countries in search of better working conditions than those offered here in Ukraine. Therefore, there has been a significant shortage of personnel in the construction sector, which has only intensified since the beginning of 2022.
Since February 2022, the unpredictable situation has caused work to stop at many construction sites, with forced redundancies. A large proportion of employees also joined the Armed Forces of Ukraine.
While the current resumption of activity on construction sites is vaguely reminiscent of pre-war levels, companies are already facing difficulties in finding experienced specialists. Due to mobilisation, there is a significant shortage of technical experts in construction enterprises, and finding suitable replacements is quite challenging. The labour market problem will be further exacerbated by the potential departure of skilled professionals to reunite with their families abroad after the lifting of the martial law regime.
At the same time, the demand for personnel will increase due to the need for the restoration and construction of a significant number of properties. According to a recent study by the audit company EY, the destruction of real estate caused by the war exceeds the entire new housing supply that has been introduced over the last seven years.
Some forecasts suggest that the appearance of a large number of vacancies for reinforced concrete builders, welders, and masons, which may be challenging to fully fill with Ukrainian workers, could lead to a migration influx of workers from Asian and African countries.
As the experience of countries that underwent reconstruction after World War II shows, having teams with adequate experience and qualified specialists who can organise and manage the process is crucial for successful project implementation. Consequently, a shortage of personnel would mean a slowdown in the pace and scale of construction
Read also: Rebuilding Ukraine: How a devastated village in the Kherson oblast will look like after 'reincarnation'?
Demand for skilled personnel in Europe
The need for construction experts is also relevant for Europe. russia's aggression against Ukraine has led to an increase in the cost of energy resources and problems with the supply of construction materials, causing inflation. However, these factors have not been decisive for the European construction sector.
While in Ukraine, the demand for professional personnel has intensified in the context of restoring damaged and destroyed properties, in European countries, the demand for construction experts, both in skilled trades and management positions, is driven by the high demand for housing, especially in large cities.
According to the Construction Skills Network report, the UK alone will require a quarter of a million specialists and workers in the construction industry by 2026.
For instance, in Germany, there is already a shortage of professionals who can plan and supervise construction work, while Switzerland faces a shortage of masons and road workers. It is projected that the demand for such specialists will only increase in the near future.
Last year, according to surveys conducted by Statistics Poland, more than 40% of companies in the construction sector faced a shortage of personnel, partly due to a reduction in the number of workers from Ukraine. In 2022, based on data from the Polish Employers' Association in Construction, there were around 127,000 Ukrainians working in this industry, but due to the war and mobilisation, their numbers decreased by two-thirds.
The reasons behind the labour shortage in the industry are common for the mentioned markets. Primarily, this is happening due to a decline in interest in construction professions among young people and a prevalence of workers in pre-retirement and retirement age.
To strategically address this problem, including in the UK, efforts are being made to attract and train young people and retrain the adult population. To retain experienced workers, employers are working on increasing wage levels to offer competitive rewards and better working conditions.
Attracting qualified professionals for reconstruction
As the problem is expected to escalate over time, it is crucial to actively work on resolving the staff shortage right now.
To preserve the human resources potential of critical enterprises, the state has provided the possibility of reserving employees liable for military service, but in practice, many such enterprises do not meet the criteria.
Therefore, firstly, in order for businesses to operate and pay taxes, it is necessary to find tools that would minimise the impact of mobilisation on production processes.
Secondly, an important aspect of solving the problem is to orientate the younger generation towards practical specialities that will be valued in the post-war job market. This requires updating the training methods and the overall level of vocational education in line with current market requirements. For example, such training conditions will be facilitated by organising cooperation between the construction business and educational institutions.
Thirdly, the situation related to the shortage of qualified workers can be improved through the implementation of targeted policies aimed at training or retraining specialists.
Therefore, after the war, short-term nationwide programmes that involve the engagement and retraining of adults, including former military personnel, could become a beneficial and effective instrument.
Creating comfortable working conditions and increasing wages are also important factors, which are hard to imagine without economic incentives from the government. This will allow businesses to retain and discourage people from seeking employment abroad after the lifting of martial law, and it will also positively impact the perception of vocational education and construction professions in society as a whole.
The nationwide policy should already be focused on attracting and retaining skilled workers in the construction industry. Firstly, it is necessary to refine the procedure for reserving specialists, adapt the education system to the conditions of wartime, and develop a retraining programme for adults, among other initiatives. The pace and speed of the reconstruction process will depend on these efforts.
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