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Croatian Builders Need 3,000 Foreign Workers!

Croatian builders need 3,000 foreign workers to compensate for the outflow of qualified workers from Croatia, an estimate presented by the Croatian Chamber of Economy (HGK) on Thursday.

– Recently, there has been a noticeable large outflow of qualified workers from Croatia, especially bricklayers, carpenters, reinforcement workers, tilers, and similar professions, states the HGK press release.

The Vice President of HGK for construction, transport, and connections, Mirjana Čagalj, warns that the lack of workers with the necessary knowledge and skills is increasingly becoming a key limiting developmental problem for Croatian construction, as well as the economy as a whole.

– Despite regular advertising and seeking labor through the Croatian Employment Service (HZZ) and participation in job fairs, employers cannot replace the workers who have left, as there simply are not enough such workers in the Croatian labor market, emphasizes Čagalj.

She adds that companies cannot replace the employees who have left even by outsourcing part of the work to other contractors, as almost all business entities are facing the problem of labor shortages.

She warns that in the last few years, more than 53,000 jobs have been lost in the construction sector (34.4 thousand in legal entities and 18.7 thousand among craftsmen), and the share of construction in GDP has decreased from 8.5% to 4.4%. Additionally, in recent years, the volume of construction work has decreased by 46.6%, the value of completed work by 49.3%, the number of completed apartments by 69.2%, and the number of issued building permits is down by 46.3%.

– Construction has almost halved, and we can hardly expect recovery without importing labor as a fire-fighting measure during this period until a proper labor market is established in Croatia, emphasizes Čagalj, adding that addressing labor import as an emergency measure that occurred this year was a positive shift, but that the quotas are too small and unfairly distributed.

Builders pay taxes for 12 months but work a maximum of six

– There was no consideration of the size and needs of individual companies. The criterion for granting permits was solely who applied first, and many companies were left disadvantaged, says Čagalj. She proposes that the annual quota for employing foreigners in 2017 in the construction sector be multiplied, as around 3,000 permits are needed, and that such a decision be made as soon as possible.

Čagalj adds that importing labor is a necessary measure in the short term, but that in the long term, it is essential to create a platform for a work-based education system and a system that encourages employees for lifelong learning.

– The current state of the domestic labor market in construction is characterized by a low activity rate compared to other EU member states and one of the highest unemployment rates overall. Croatian construction is further burdened by the accelerated emigration of young, educated, and professionally trained personnel, warn the Chamber.

According to the data presented, the total number of employed in 2015 in construction was 86,740, or 6.6% of the total number of employed.

However, they also warn of data that in 2015, the total number of unemployed builders registered with the HZZ in Croatia was 21,394, while in 2008 there were 15,425 unemployed in construction.

They also warn that the average net salary in construction in 2015 was 4,881 kuna, which is 14.5% less than the average net salary in the Croatian economy.