Construction Faces Major Skills Shortage in Germany

Construction Faces Major Skills Shortage in Germany

A significant shortage of skilled workers is threatening to derail infrastructure projects funded by Germany’s Special Fund for Infrastructure and Climate Neutrality (SVIK), according to a new study released this week. The Institute for German Economy (IW) estimates a critical deficit, particularly impacting planning and construction phases.

Currently, an estimated 10,000 professionals are lacking to handle the planning aspects of the projects alone. Looking ahead, the IW projects a gap of approximately 69,000 skilled workers across infrastructure roles between July 2024 and June 2025. The most pressing need is in civil engineering, where over 4,000 positions remain unfilled, hindering the timely renovation and maintenance of roads, railways and bridges.

The IW proposes actively recruiting personnel from EU third-party countries to alleviate the workforce deficit. Alexander Burstedde, an IW expert, cautions that escalating construction costs pose a serious risk of diminishing the fund’s overall value. He emphasized the need for the federal government to prioritize measures to increase the availability of skilled labor and streamline construction processes, warning that unchecked price increases could result in billions of euros being lost.