Invest to build the global workforce needed

Safwan Sobhan, Founder and Chair of Safwan Bashundhara Global, emphasises the importance of closing the global construction skills gap.

The construction sector is a driving force of economic growth worldwide, but it is facing a critical shortage of skilled workers. With an ageing workforce, the EU is projected to lose around one million workers each year, creating a shortfall of approximately 44 million workers by 2050. This widening gap in experience and capability poses serious challenges for maintaining productivity and economic growth. Without immediate investment in training and skills development, there’s reason to fear that the sector could face long-term stagnation.

Germany, Austria and Switzerland are all struggling to fulfil construction vacancies, with Austria having the highest vacancy rate (5.8%). Across the EU, zero growth is forecast for the construction sector this year, reflecting the deepening labour crisis. Companies that embrace digital tools, off-site construction and automation are better positioned to cope with shortages, but innovation alone isn’t enough. We must invest strategically in training the next generation of skilled workers to ensure the sector can grow sustainably, deliver modern infrastructure and remain competitive on a global scale.

Housing needs

Around the world, housing shortages continue to intensify, prompting government efforts to increase the supply of new homes. However, these initiatives frequently fall short of targets due to limited skilled workers available and structural challenges such as rising interest rates and construction costs. Currently, Germany is experiencing a severe housing crisis, where 800,000 new homes are needed urgently. For the fifth consecutive year, the Swiss housing vacancy rate has fallen, sitting at just 1%.

By 2030, it is estimated that three billion people – roughly 40% of the world’s population – won’t have access to adequate housing. Additionally, an estimated 100 million people worldwide are homeless and one in four people live in harmful conditions affecting their health and safety. The consequences of the global construction skills gap will be visible across every level of society. It will jeopardise the delivery of national housing targets and major public projects and derail the progress needed to meet green transition goals. Without the right workforce, we simply cannot build the sustainable infrastructure required for a low-carbon future.

The environmental dimension of this crisis cannot be ignored. Construction plays a central role in reducing global emissions and meeting net-zero targets, but the shortage of workers trained in green building, energy-efficient design and retrofitting will hold us back. We urgently need to equip the workforce with the technical skills required to deliver low-carbon infrastructure, sustainable housing and renewable developments.

Diversity and inclusion too would expand the workforce. Currently, construction remains one of the least diverse industries, limiting its talent pool – for instance, women represent just 0.9% of housebuilders and 4% of skilled trades in the UK. Expanding inclusion is an imperative, both for our society and our economies.

The construction skills gap is disastrous. Governments must act now by investing in vocational education, modern apprenticeships and digital skills to build the construction workforce that is needed.

For more, visit sbg-bd.com

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