The Construction Sector Seeks Labor Import, What Will the New Government Decide?

The construction sector has been on its knees for seven years. The boom of construction companies in the first half of the 2000s was a result of strong expansion and highway construction, and everything written like that quickly falls apart. From the golden days to today, construction activity has fallen by 46 percent, half as many permits have been issued, and 56,000 jobs have been lost.

– Once, the construction sector contributed 8 percent to Croatia’s GDP, today it contributes 5 percent, šwhich is below the European average of šix percent – this data was presented on Wednesday by Mirjana Čagalj, Vice President of the Croatian Chamber of Economy (HGK) for construction, transport, and connections.

She warned that there is a chronic shortage of labor in this sector, amounting to thousands. – There are 1,000 bricklayers registered at the Employment Office, but construction companies warn that there is not a single one. Either they work illegally, or they have gone abroad, or they do not want to work, or they have been surpassed by technology – says Čagalj.

She emphasized that HGK has warned the government several times and requested that labor import be allowed; this was prohibited in 2015, and it is uncertain what the new government will do. In addition to all this, the problem is the extremely poor educational system that „educates new workers for the labor market.“

However, there are signs of slight optimism. In the first nine months of 2015, the volume of construction work grew by 8 percent, but when the last quarter is taken into account, it is very likely that stagnation will ultimately be shown.

Additionally, in the new issue of Lider, you can read an interview with the owner of Kamgrad, Dragutin Kamenski, who talks about how they managed to survive the crisis, what the problems in the sector are, and what steps the new government should take to save construction in Croatia.