The shortage of construction workers affects the entire industry
The construction sector relied heavily on Ukrainian workers. Since the Velvet Revolution in 1989, foreign workers have been flowing into Czechoslovakia and later into the Czech Republic. These were mainly workers from Eastern Europe who could earn significantly better wages here than in their home countries. The Czech workforce has long been unable to meet the full demand. The low number of domestic workers has also been influenced by the reluctance to perform physically demanding jobs, as well as the lack of social prestige associated with such professions.
As a result of these factors, some industries can no longer function without foreign workers. This is well illustrated by men from Ukraine, who have practically become synonymous with construction labor. Companies have become so accustomed to the availability of this workforce that they began to consider it a natural part of their capacity planning. Today, such migration would be described as a win-win solution. However, the Czech Republic is not immune to geopolitical influences.
The Russian invasion has significantly impacted the industry
When the Russian army invaded Ukraine at the end of February 2022, few could have imagined the full consequences. The war has been ongoing for more than four years, and peace remains out of reach. During this time, millions of refugees have been forced to leave their homes. At the same time, many men from the attacked country joined the army to defend their homeland. This situation has also affected the domestic labor market.
Ukrainian workers are now fighting on the front line, and the missing construction workforce is difficult to replace. The majority of war refugees are women of working age, often university graduates with small children. While the labor market has successfully absorbed these refugees, it does not compensate for the shortage of workers on construction sites.
How companies are responding to the shortage of construction workers
The search for employees is nothing new for Czech HR specialists. Even before the Russian invasion, there was less than one candidate per vacancy. In such conditions, creativity knows no bounds. HR professionals have been trying various solutions, but the following proven approaches have proven to be the most effective:
Modernization of processes as a logical step
Technological progress would have occurred regardless of the labor shortage in construction and other sectors. Mechanization, digitalization, and partial automation of processes effectively reduce dependence on human labor, ultimately lowering overall costs.
A typical example is prefabrication. This approach is based on preparing parts of the construction off-site and assembling them on-site. This significantly reduces both construction time and the need for manual labor. At the same time, the importance of digital tools, such as project management software and job management systems, continues to grow.
Automation still faces its limits. Not all tasks can be replaced by technology, especially in smaller projects or specialized craft work. Moreover, initial investments in modernization represent a significant financial burden for many companies. Nevertheless, this is a direction that will play an increasingly important role in the coming years.
Wage increases also help address the shortage of construction workers
Another logical response is improving working conditions. The shortage of workers forces employers to offer higher wages, hiring bonuses, and a wider range of benefits. The goal is not only to attract new employees but also to retain existing ones.
Rising labor costs are also reflected in the overall economics of projects. As a result, companies reassess their budgets when carrying out contracts. In some cases, they are also forced to adjust their service prices due to the lack of construction workers. This development ultimately affects investors as well as end customers.
