Why are there no people in construction – when there has never been more work?

Because the construction sector is losing workers on three fronts at the same time: the older generation is retiring, the younger one is moving abroad or becoming self-employed, and the new generation is not even entering – there is no interest, or it does not come through vocational schools fast enough.

We are in a situation where we keep filling gaps that continuously open up: as soon as we hire one worker, another announces they are leaving. The labour market is not going back to how it was – and this is not a temporary trend, but the culmination of structural changes that have been building up for years.

Key data:

• Sector growth: +15% per year (MPGI, HGK forum 2025)
• Annual shortage: 8,000–9,000 construction workers (MPGI, 2025)
• Main causes: demographics, migration, work organisation
• Key risk: loss of knowledge and experience through the departure of key people

Why aren’t there enough workers in construction?

There is more work than ever – from post-earthquake reconstruction, housing and tourism projects, to large EU-funded infrastructure projects.

There are three structural causes that cannot be solved with a job advert.

Why is construction short of labour?

Experienced workers have left the country

After Croatia joined the EU, and especially once the Austrian and German labour markets opened, thousands of trained workers – engineers, technicians, foremen, steel fixers and other trades – left to work outside Croatia.

Young people are not entering the trade

For years, work on a building site was perceived in society as physically hard, dirty and not attractive enough. There is a national initiative to encourage enrolment in vocational schools, but it does not generate enough enrolments of young people. As a result, older craftsmen are retiring and there is no one to replace them. (Eurofound, Building on growth potential, 2024.)

Is the problem only a lack of people?

Right now, we need to be aware that people will very likely be in short supply for many years to come, and that every departure should be prevented in time wherever possible. The shortage of construction workers cannot be solved overnight, but we can work on retaining existing employees and improving the system as such.

When, for example, an experienced foreman leaves, that departure is hard to replace, and it actually costs the employer a great deal – through the loss of knowledge, a search for a replacement that will take time, a team that has to take over part of his work, and works that are put in question given the contractual deadline.

The labour shortage is not just a labour-market issue. It is often a question of the internal state of the company.

How do some companies manage to retain their workers?

They are not always the companies with the highest salaries. Research shows that work organisation, quality of leadership and interpersonal relationships are key predictors of staying – or leaving. (Construction Management and Economics, An analysis of the literature on construction employee turnover, 2024.)

On a construction site, the manager plays a major role – and not only as “the person responsible for delivering the project on time and on budget”. I often hear: a real manager also has to be a bit of a psychologist. And I agree – because a manager who can recognise when the crew is flagging and act at that moment is worth more than any job advert.

Site Scan

This is exactly what I uncover through the Site Scan – a MIKRO HR service: what the leadership is like, who might be about to leave, what is creaking or about to snap, and the departure of a new person.

Through the service you get:

• The actual state of your site – through the team and the real problems that need solving
• A list of problems without sugar-coating – and concrete actions within 30 days

Conclusion

In an environment with a shortage of quality construction workers, it is important to retain existing quality employees and to identify room for improvement. A loss of quality in the work does not happen overnight, but it is inevitable if people problems are not addressed systematically, professionally and with an understanding of the business. That is exactly why MIKRO HR was created – to act as a partner to directors of construction companies.