Construction Industry Challenges: Confronting an Aging Workforce in Skill and Labor Shortage
Construction Industry Challenges: Confronting an Aging Workforce in Skill and Labor Shortage

Author(s): Ivana Šandrk Nukić, Dora Škorić
Subject(s): Labor relations, Economic development, Migration Studies, Human Resources in Economy
Published by: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku
Keywords: aging workforce; construction industry; labor and skill shortage; HRM in construction;
Summary/Abstract: The construction industry is experiencing post-crisis recovery, but its growth generates labor and skill shortages, with the construction industry being a labor-intensive industry. As the shortage of skilled workforce has been identified as a significant risk to future economic growth, this chapter has investigated the reasons for such deficiency within the construction industry and studied its effects. The authors have done an extensive literature review and conducted a case study of a regional construction leader in east Croatia. The research findings show that the emigration of the workforce simultaneously with work volume growth is the primary source of the construction workers shortage in Croatia. Additionally, it has been proven that the lack of employees is worsened by an increase in the average age of workers and the unattractiveness of the construction industry, especially from the perspective of the young. The tested correlation between the average age of the workforce and net profit per employee is weak in the examined company, so there is no statistically significant impact of employees’ age on the company productivity. A research limitation arises because empirical findings come from a single case. However, the chapter did reveal critical issues deriving from the increasing age of the construction workforce. Although health profiling of workers, dual vocational education, and overall promotion of the civil engineering profession remain for more detailed future analysis, this chapter generated a discourse with both scientific and practical merits.

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