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- Impact of the European Green Deal on selected occupations: Construction workers
Impact of the European Green Deal on selected occupations: Construction workers
Summary
The European Green Deal (EGD) is the main European strategy to address climate challenges. It sets out the EU’s path to becoming a modern, resource-efficient, and competitive economy. Together with the increasing digitalisation and automation of work, the EGD will affect jobs and skills across the EU economy, reducing the demand for some, and increasing the demand for others.
Some occupations can be considered key enablers of the EGD implementation. They can be both technical, such as digital, science and engineering occupations, but also non-technical, such as legal and social professionals, or finance and administration specialists. In many instances, the key occupations linked to the green transition are high-skilled, requiring tertiary degrees. Some of those, while relatively low in terms of total employment, play an outsized role in developing and maintaining technologies crucial for the green transition. The green transition happens at all skill levels and many medium to low-skilled occupations are equally important to make it happen.
This report looks at a group of occupations associated with VET degrees – construction workers – who are impacted by and can influence the implementation of the green transition.
Who are they?
Construction workers are among the occupations strategically important for the green transition. 3 out of 4 of them are employed in the Construction sector, the pillar of the Renovation Wave. The sector accounts for more than 35 per cent of the EU’s total waste generation, while greenhouse gas emissions (GHG) from material extraction, manufacturing of construction products, and construction and renovation of buildings are estimated to account for 5-12 per cent of total national GHG emissions. Trends and challenges in the construction sector profoundly influence construction workers’ skills.
Figure 1: Detailed construction workers’ occupations
Source: European Skills, Competences, Qualifications and Occupations classification (ESCO)
More than a half of construction workers are employed as building frame workers constructing or repairing buildings, foundations, walls, and structures of various materials, such as brick, stone, or concrete. Building finishers, representing a third of construction workers’ jobs, cover, apply or install, maintain, and repair roofs, floors, walls, insulation systems, glass in windows or other frames, as well as plumbing, piping and electrical systems in buildings and other structures. Finally, slightly over one tenth of construction workers are painters, building structure cleaners and related trades workers.
Construction workers accounted for almost 4 per cent (8 million workers) of employment across the EU in 2023. Compared to 2011, this was a slight decrease, and Cedefop Skills forecast only foresees a small change in employment until 2035. However, internal dynamics of skills and jobs demand for these workers will be significant.
Figure 2: Key employment data for construction workers (in thousands)
Source: European Labour Force Survey and Cedefop Skills Forecast database. Cedefop calculations.
Over time, the share of construction workers employed directly in construction companies is declining, from some 75 per cent in 2011, to estimated 64 per cent in 2035. Construction workers’ jobs share in other sectors – mainly manufacturing, and then in a couple of service sectors, including real estate activities – has never been significant, but is constantly rising over time.
Figure 3: Forecast employment change of construction workers by sectors (2021-2035, in thousands)
Source: Cedefop Skills Forecast database. Own calculations.
In terms of job creation and destruction, these two developments almost cancel each other out. In reality, what we are most likely observing, is a separation of building maintenance services from construction companies’ portfolio. Building maintenance is either being secured by specialised services companies, or “insourced” by large building owners, such as manufacturing or real estate companies.
Changing requirements for the greening of construction and building renovation, driven by EGD linked initiatives (e.g. the New European Bauhaus and the Renovation wave) directly affect job and skills demand for this occupation group.
While many of the jobs significantly influenced by the greening of construction are in different occupations (electricians, engineering technicians, architects and home designers, and similar), changing standards and processes will influence construction workers a lot – from use of different or improved materials for building frame construction, to ever increasing importance of insulation and house cooling systems, to innovative approaches to painting and cleaning of building structures.
Construction workers' occupations key for the green transition
Some of the detailed occupations included in this occupational group will play a key role in the making European economies and societies greener. Specific tasks and skills are presented below.
Building frame workers
These roles include house builders, bricklayers, stonemasons, concrete placers, or carpenters. Regarding the green transition, their tasks are mainly related to the adoption and effective use of new methods and materials and technologies for better insulation and heating, but also to the proper treatment and separation of waste. This is in particular true for the demolition workers: in demolition activities the importance of the proper treatment of many dangerous substances and materials, as well as the separation of waste for possible reuse can significantly contribute to the lessening of environmental impacts.
Building finishers
These roles include roofers, floor layers, plasterers, insulation workers, but also glaziers, plumbers and air-conditioning and refrigeration mechanics. While the work of building frame workers is mostly about proper materials use, building finishers deal a lot with the installation of green technology, be it solar panels for roofers, cooling and heating systems for plumbers and pipe fitters, or air conditioning and refrigeration mechanics. In addition, insulation workers are crucial in achieving low-energy or passive certifications for house energy consumption.
Painters and building structure cleaners
Regarding the green transition, the tasks of painters and building structure cleaners include the proper use and treatment of dangerous substances, such as paint or cleaning chemicals.
Employment and skill trends
Employment
The employment trends of construction workers in the past decade reflect the uneasy sailing of the whole construction sector. Their employment was decreasing until 2014, as the sector was recovering particularly slowly after the 2008 financial crisis. A slow and steady recovery between 2014 and 2019 was disturbed by the Covid-19 impact, but a fast recovery followed.
The number of construction workers in the EU-27 in 2022 reached its highest point in a decade. After a sharp decline in 2020, when the hardest hit of the Covid-19 pandemic led to a loss of more than 400 thousand jobs, the sector recovered, leading to over half a million new jobs for construction workers in just two years.
Figure 4: Employment share of construction workers (2022)
Source: European Labour Force Survey. Own calculations.
There are no significant employment patterns of construction workers across Europe; however, it looks like the eastern and southern European countries tend to employ more of them, possibly because in these countries, construction – either of buildings or infrastructure – is more intensive, and substantially supported through EU development funds.
The prospects for the construction sector, and its backbone of construction workers, seem good, but turbulent times are not over: shortages of building materials and their high prices further threaten construction investments and jobs.
When comparing past and forecasted employment trends for construction workers, some countries stand out. Ireland, Spain, Bulgaria, Poland, and Lithuania were among those with strong employment growth in the past decade while expected to create many new construction workers’ jobs in the future. Greece, Portugal, Denmark, and Hungary have the least optimistic employment prospects for this occupation.
Figure 5: Past and future employment trends of construction workers
Source: Eurostat’s Labour Force Survey, table code LFSA_EGAI2D__custom_7274321, and Cedefop Skills forecast. Own calculations.
Note: Significant growth
Countries labelled with * indicate low sample size and thus lower data reliability.
The green transition is expected to significantly affect the construction sector, especially in relation to the Renovation Wave activities. Exploring the potential impact of the European Green Deal on employment and skills in the EU highlights that construction workers could have the largest positive impact in absolute terms and the second-largest impact in percentage terms on employment by occupation (compared against a baseline employment scenario) (Cedefop 2021).
Similar were the results for construction workers of an ILO analysis (ILO 2019) particularly regarding the impact on global employment of the transition to a sustainable (decarbonised) energy system. Global employment in this occupation by 2030 was estimated at about 4 million jobs higher than the baseline employment scenario. An important message for VET and skills policies concerns that the majority of the expected new construction workers’ jobs could not be filled by laid-off workers from other similar occupations in the same country or region, as the skills required are too different. If these new jobs are to fulfil a role in reducing unemployment, laid-off workers from other occupations will need up- or re-skilling.
The importance of VET was stressed under the second scenario (developed to investigate the global impact on employment of the transition to a more circular economy) run by the ILO: globally, around 3 million new construction workers’ jobs could be filled by laid-off workers with little retraining by 2030; however, about 5 million jobs in this occupation group are estimated to be lost. Of these, just under half are estimated to be “not re-allocatable”, suggesting that many laid-off workers from similar occupations will need re- or up-skilling.
Employment trends will also be positively affected by technological advancements and changes in production methods, although construction workers face a high risk of automation. For example, the shift to off-site construction will create jobs for painters, among others. Modular offsite construction will require skills relevant to efficient collaboration rather than completely new technical skills (ECSO, 2020).
Skill needs and challenges
The European Construction Sector Observatory (ECSO 2020) highlights a number of structural challenges affecting skill development and mismatches in the construction sector, including: a decrease in the number of young skilled workers in the sector; the ageing of the Construction sector’s workforce; the loss of high-skilled workers from countries with lower wages to those with higher wages, and a misalignment between VET and the demand for skills in the sector. The lack of a skilled workforce is reportedly another significant factor holding back the speed and breadth of digitalisation of the sector.
On top of these challenges, the two key drivers of change in terms of employment and skills in the construction industry and for construction workers are advances in technology, including automation, and the need to construct greener buildings/infrastructure and make the existing building stock/infrastructure greener (both in terms of use of materials and in terms of energy use and emissions), as is included in the aims of the EGD. Digitalisation and automation will result in many benefits for the sector, in terms of productivity, sustainability/circularity of processes and materials used, as well as workers’ safety. Nonetheless, construction workers face a significant risk of automation among trades workers, since robots and other technologies minimise the need for physical human presence on the construction site (ECSO, 2021). Also, most construction companies are SMEs (and 94% of those are micro-enterprises), which face the usual challenges regarding training provision (limited human and financial resources, lack of awareness regarding, for example, the importance and use of digital technologies etc.) (ECSO, 2021).
In terms of meeting the requirements of the EGD, there are many areas and ways in which the skills and knowledge required for the occupations in this group will need to be transformed or upgraded, many of which can make use of technological advancements. For example, building erectors will increasingly need to learn how to install pre-fabricated building systems (e.g. structural insulated panels (SIPs)) that have been manufactured off site; heating, ventilation and air conditioning (HVAC) installers will need to understand and apply the technology to install energy-efficient appliances and systems; roofing installers will need to learn how to install better-insulated roofs, and green roofs; on-site Construction workers may need to learn how to collect and record information (e.g. building ventilation and airtightness metrics) required for building information modelling (BIM), and; plasterers, painters and decorators will need to learn how to use more-environmentally-sustainable products, which may require specialist application methods.
The drivers of change are likely to affect demand for skills in the different sub-sectors of the construction sector (housing, civil and specialised building) in different ways. For example, the EGD objectives drive the demand for renewable energy and probably also nuclear energy; this can augment the demand for construction workers with the skills necessary to build, say, nuclear power plants, in the specialised building sector. The increased use of prefabricated building systems such as structural insulated panels (SIPs) will require some new skills for construction workers, particularly in the housing industry; but it could also reduce demand for on-site workers, while boosting demand for workers in manufacturing. At the local level, as cities move to become smart(er) and green(er) (Cedefop, 2022) construction activities such as the installation of sensors to monitor and capture data on traffic flows, ensuring that buildings comply with a range of green principles will become more important.
Implementing the EGD goals may not lead to the emergence of many new occupations in the construction workers occupational group; but new skills or adapting existing skills to meet the requirements for greening the building stock will concern several occupations in the group, generally at the medium skill level, such as carpenters, plumbers, roofers, painters, and plasterers (ILO 2019).
'Greening' construction workers through VET
Current and future trends in the construction sector and the overall shift to a more circular economy place VET at the frontline for developing the skills needed for Construction workers, along with other occupations. Although emphasis can be placed on continuous VET (CVET) to help existing workers develop new required skills, initial VET (IVET) can attract and train new, mainly younger, workers with the right skills VET policies and linked activities should always be tailored to national/regional labour market needs and societal norms; however, there are some common challenges that should be taken into consideration across EU Member States.
Qualification levels of construction workers
Almost 70 per cent of construction workers have VET degrees, usually at ISCED 3-4 level. In 2022, approximately one-third of construction workers had lower than secondary education (ISCED 0-2). The substantial number of construction workers with low qualifications (more than 2 million in 2022) may struggle to respond to rising skill needs, especially if not provided with sufficient training opportunities.
Cedefop Skills Forecast estimates that there will be a substantial change in qualification demand for construction workers. Between 2021 and 2035, the number of construction workers holding low qualifications is foreseen to decline by more than 800,000; while employment of those with secondary qualification levels is expected to increase by almost 400,000. More than 500,000 more construction workers will hold tertiary qualifications in 2035.
These changes reflect the rising complexity of these workers’ jobs, be it the use or installation of more advanced technologies, or the need to expand their knowledge about materials, waste treatment, energy consumption or related norms and regulations. At the same time, Cedefop’s 2nd European Skills and Jobs Survey revealed that more than 60 per cent of construction workers feel they have substantial upskilling needs, but only around 45 per cent were recently provided with job skills-related training. A similar gap, only with lower shares of workers, exists in digital skills. Formal upskilling – not only having mastered the necessary skills but also having them recognised and certified – will also be needed, for workers to achieve better and easier career progress.
Responding to the demographic challenge
Job shortages are a looming challenge for the occupation. While the net job growth of construction workers will be small, ageing will bring the job demand challenge to a different magnitude – it will be almost 50 times higher. Less people entering secondary education and a growing preference for academic studies will lead to skill gaps. Increasing the attractiveness of VET construction programmes will alleviate some of the labour market pressures. Migrant workers will also be needed for meeting the needs of the sector.
Being the backbone of a sector such as a construction that can be highly sensitive to economic and geopolitical developments, construction workers are faced with luminous employment opportunities – relevant, and timely VET offering is one of the ways to safeguard this.
The wide range of factors that affect these workers’ skill profiles can be better addressed by a VET system that is linked to skills intelligence outputs through a comprehensive sectoral skill strategy. The EU-funded Construction Blueprint project offers a sectoral skills strategy and highlights training options for easing the sectoral skill challenges. Alongside this, EU and national level initiatives are in place, signalling skill needs and training opportunities; for example, the EU BUILD UP Skills initiative is the largest pan-European effort to equip building professionals with the skills needed particularly for the energy transition.
Box: BUILD UP PROGRAMME To equip construction workers with the skills needed for the energy transition the BUILD UP Skills programme offers: BIMplement, training on-site workers across Europe on how to use building information modelling; CraftEdu, an e-learning platform that helps to ensure the availability of the right skills amongst on-site workers and vocational schools in Czechia, and; CEN-CE, a training and certification programme in energy-efficient construction for heating, ventilation and air conditioning professionals. |
The European Alliance for Apprenticeships (EAfA) is the EU multi-stakeholder initiative that aims to strengthen the quality, supply, and overall image of apprenticeships across Europe, while also promoting the mobility of apprentices. Within the construction sector, the ‘Apprenticeships for the Construction Industry of Tomorrow campaign aims to attract young talent to improve the image of the sector and encourage the construction industry to offer more and better apprenticeships.
Interventions have been made across the EU mainly to tackle skills-related issues, as well as aiming to improve the image of the Construction sector and attract young and female workers, support the development of digital skills, incentivise apprenticeships and improve the quality of VET [1]; for example, the ‘I choose construction’ and ‘Women can build’ projects in France, and incentives to attract the young to civil construction and public sector works in Portugal.
How to cite this publication:
Cedefop (2024). Impact of the European Green Deal on selected occupations: Construction workers. Skills intelligence data insight.
References
Cedefop (2022). Cities in transition: how vocational education and training can help cities become smarter and greener. Luxembourg: Publications Office. Policy brief. http://data.europa.eu/doi/10.2801/009067
Cedefop (Cedefop 2021). The Green employment and skills transformation: Insights from a European Green Deal skills forecast scenario. Publications Office of the European Union, Luxembourg 2021.
http://data.europa.eu/doi/10.2801/112540
CORDIS (2019). Results Pack on construction skills, A thematic collection of innovative EU-funded research results – Equipping building professionals with new skills to achieve European energy targets. Publications Office of the European Union, Luxembourg, December 2019.
http://publications.europa.eu/resource/cellar/73fde71a-25fb-11ea-af81-01aa75ed71a1.0001.01/DOC_1
CORDIS (2021). Results Pack on construction skills, A thematic collection of innovative EU-funded research results – Leveraging new skills for the building sector to deliver on the European Green Deal. Publications Office of the European Union, Luxembourg, September 2021.
http://publications.europa.eu/resource/cellar/478b8f13-15cd-11ec-b4fe-01aa75ed71a1.0001.03/DOC_1
Edge Foundation (2022). Greening Construction: A complex challenge for jobs, skills and training, March 2022.
https://www.edge.co.uk/documents/293/EDGE_Greening_construction_Report-Final.pdf
European Construction Industry Federation (FIEC) (2019). Construction 2050 – Building tomorrow’s Europe today. Brussels, 13 June 2019.
https://euconstruction2050.eu/wp-content/uploads/2020/11/c2050-alliance-concept-note-final.pdf
European Construction Sector Observatory (ECSO) (2021). Digitalisation in the construction sector.
https://single-market-economy.ec.europa.eu/document/download/3ae8a41e-4b82-4150-968c-1fc73d1e2f61_en
European Construction Sector Observatory (ECSO) (2020). Improving the human capital basis – Analytical Report, March 2020.
https://ec.europa.eu/growth/document/download/0e4ab245-35eb-4922-988f-b7bbecc85a18_en
International Labour Organization (2019). Skills for a Greener Future: A Global View based on 32 Country Studies. International Labour Office, Geneva, 2019. https://www.ilo.org/skills/pubs/WCMS_732214/lang--en/index.htm
World Economic Forum (WEF) and Boston Consulting Group (BCG) (2019). Towards a reskilling revolution: A future of jobs for all. Geneva, 24 October 2019.
http://www3.weforum.org/docs/WEF_Towards_a_Reskilling_Revolution.pdf
Endnotes
[1] ECSO 2020, Chapter 5. Policy initiatives.