Labour shortages in the construction sector have become a persistent challenge in both Cyprus and across the European Union.
This has prompted industry bodies such as the federation of building contractors (Oseok) to repeatedly warn policymakers that long-term structural issues, rather than short-term pressures, are undermining growth and competitiveness.
This broader backdrop has again come into focus after Oseok met Labour Minister Marinos Mousiouttas earlier this month to discuss the chronic lack of workers in the construction sector and the need for policy responses that address both immediate and long-term needs.
According to Oseok, the meeting highlighted concerns that the labour shortage is no longer cyclical but structural, with the federation stressing its readiness to contribute to dialogue and policy design aimed at strengthening the sector.
In Cyprus, Oseok has for several years highlighted that the supply of both skilled and unskilled labour is failing to keep pace with demand, despite conditions of near full employment in the wider economy.
“The construction industry is among the sectors most severely affected,” the federation has said in earlier interventions, warning that shortages are disrupting private developments and delaying major public infrastructure projects.
According to Oseok, the problem is driven in part by the limited inflow of new workers from the domestic labour market, as fewer Greek Cypriots are choosing careers in construction, while an ageing workforce struggles to meet modern demands.
The association has stressed that today’s construction sector increasingly requires technological skills and knowledge of sustainable building practices, which many older workers lack and younger workers are not being trained for at sufficient scale.
The situation has been compounded by a decline in the availability of foreign labour, with Oseok pointing to reduced inflows in recent years and increased competition for workers across sectors.
“These shortages jeopardise the evolution of the construction industry,” Oseok has warned, linking labour constraints to project delays, rising costs and reduced competitiveness.
The federation has also underlined broader knock-on effects, saying labour shortages are influencing real estate affordability, slowing essential infrastructure delivery and discouraging investment.
Beyond Cyprus, the construction sector faces similar pressures across the EU, where it employs more than 13 million people but has remained on official shortages lists for many years.
The European Commission has identified 42 occupations facing shortages, with construction, transport and health among the most affected sectors.
“Four in five businesses struggle to find the workers that they need with the right skill set,” said Roxana Mînzatu, European Commission vice-president responsible for social rights, skills and quality employment, during a February 2025 address to the European Parliament in Strasbourg.
“There are more than 40 occupations with EU-wide shortages, especially in important sectors like construction, trades, transport and some healthcare professions,” she added.
Experts say the causes are structural, involving mismatches between education systems and labour market needs, alongside demographic decline and rapid technological change.
“There could be pressures because of the demand,” said Ilias Livanos, an expert on skills and the labour market at Cedefop, explaining that fast-evolving sectors make it difficult to predict future skill requirements.
“And clearly the systems, education systems are not prepared for this,” he said.
Demographics are a major factor, with the EU expected to lose around 1 million workers every year until 2050.
“Firstly, demographics,” said Peter Bosch, senior research associate at the Egmont Institute, adding that technological change and economic recovery are also intensifying demand for skilled labour.
“Secondly, there is a rapid change in the type of skills that will be needed because of robotisation, because of artificial intelligence,” he said.
Large-scale investment plans, including an €800 billion European rearmament proposal and major defence and infrastructure spending announced in Germany, are also expected to increase labour demand across construction and related sectors.
In response, the EU has launched initiatives such as the Skills Union, unveiled on March 5, 2025, aimed at boosting training, retraining and labour mobility while making Europe more attractive to foreign workers.
At the same time, EU-backed programmes like BUILD UP Skills, supported by the LIFE Programme, have sought to close the construction skills gap by promoting energy efficiency, digital competencies and sustainable building practices.
The initiative has already supported over 100 projects and more than 50,000 individuals, helping countries including Greece, Italy, Spain and Poland update national skills roadmaps.
In Cyprus, Oseok has consistently argued that tackling labour shortages requires a strategic and coordinated approach, combining faster procedures for hiring foreign workers, targeted training and closer alignment between education and market needs.
“The skill system has no single owner,” Bosch has said, underscoring the shared responsibility of governments, employers and individuals.
