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Skills shortage - labor reality, lie or looming future?

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January 3, 2024

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Our social reality is changing rapidly. In times of climate change, the energy and mobility transition is having a massive impact on the way we live and work, both on a global and national scale. In the established industrialized nations, there is another factor that is leading to economic challenges: the shortage of skilled workers.

As a direct consequence of demographic change, it is part of heated economic policy discussions. The main point of contention: is the shortage of skilled engineers already part of everyday life, will it only become apparent in the future or is it ultimately a lie and smokescreen to divert attention from deeper problems?

The most important facts in brief

  • The shortage of skilled workers affects almost all sectors - albeit to varying degrees.

  • It also inhibits growth and efficiency in the construction industry.

  • Digitization can at least mitigate the effects.

What are the effects of the skills shortage?

Even if it is sometimes denied and dismissed as a lie, the shortage of skilled workers and engineers is indeed a pressing problem that affects many sectors of the economy and has far-reaching effects on the labor market:

  • Economic growth: A labor shortage can slow down growth in the long term. Companies that cannot find enough skilled workers cannot fully utilize their capacities, which leads to reduced production volumes and services.

  • Competitiveness: The shortage of engineers in particular also affects companies' ability to innovate. New ideas and technologies are often created by talented employees; without them, companies can struggle to remain competitive in the global market.

  • Rising labour costs: The demand for qualified workers can drive up wages, which is particularly noticeable in highly specialized sectors. This in turn leads to higher prices for products and services - one aspect of the current high inflation.

  • Labor market imbalances: Certain sectors or regions are more affected by skills shortages, which leads to imbalances on the labor market. This favors an uneven geographical distribution of jobs and prosperity.

  • International labor migration: In order to overcome the shortage of skilled workers, many countries are increasingly turning to international recruitment. However, this can often lead to particular integration challenges.

  • Workload for existing employees: Unfilled positions often result in an increased workload for existing employees, which in turn can have a lasting impact on employee satisfaction and health.

The shortage of skilled workers is therefore by no means a fantasy construct or a theorized lie, but is affecting almost all aspects of economic life to an increasing extent. Aside from specific questions, such as the benefits of BIM software in construction practice, it has long been a key point of discussion in the construction industry.

Is there even a shortage of skilled workers?

The debate is too complex for simple answers. Accordingly, only a differentiated and, above all, objective approach can help with this issue:

  • Sector-specific differences: In some sectors, such as IT, healthcare or skilled trades, the shortage of qualified specialists is clearly noticeable. Here, there is concrete evidence of unfilled vacancies and difficulties in recruiting staff. In other sectors, however, the phenomenon is less pronounced or non-existent.

  • Regional differences: In some regions, particularly in urban areas with a high density of technology companies, the skills shortage is more noticeable than in rural regions. These geographical differences are an important factor in the discussion about the shortage of engineers.

  • Wage and working conditions: Some experts argue that the supposed shortage of skilled workers is partly due to unattractive pay and working conditions. Better pay and working conditions could provide a remedy.

  • Demographic change: In many countries, the ageing population is leading to a shortage of workers. Depending on the extent of demographic change, the impact on the shortage of skilled workers in the industry varies.

Strategies in the construction industry to prevent the shortage of engineers

Complex issues require an equally complex strategy - the shortage of personnel, particularly among engineers in Germany, can hardly be eliminated with just one single measure. From the Federal Employment Agency to individual construction companies, different players and approaches are needed to prevent the consequences of the skills shortage. These include, for example

  • Specific training and further education programs: This includes the promotion of technical skills, but also knowledge in areas such as sustainable construction, energy, electrical engineering and digital technologies.

  • Digitalization: The use of modern technologies such as Building Information Modeling (BIM), drones, 3D printing and digital project management tools sustainably improves efficiency. Specialized software such as Viewpoint For Projects facilitates project organization and thus increases the attractiveness of work for civil engineers of the future.

  • Promoting health and safety in the workplace: Physical strain is often high in the construction industry. Measures to improve safety and reduce physical strain can help to attract and retain skilled workers.

  • Recruitment and integration of skilled workers from abroad: International recruitment can help to alleviate the shortage of skilled workers in the short term. At the same time, it is important to offer integration programs that make it easier for foreign skilled workers to enter the labour market and society and to avoid losing the recruited skilled workers immediately.

  • Improving working conditions: Competitive wages and good working conditions are essential to survive in the highly competitive job market for engineers. Flexible working time models are also attractive.

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Conclusion - Skills shortage - a lie or a complex problem?

Simply dismissing the skills shortage as a lie does not do justice to the problem. It is a multi-faceted problem that requires both cross-industry and industry-specific solutions.

Specific strategies such as the promotion of health and safety, the use of digital tools such as Viewpoint Field View in construction practice and attractive working conditions are particularly crucial in the construction industry.

This is the only way that companies and industries can proactively counter the shortage of skilled workers, remain fit for the future and dynamically adapt to the challenges of a globalized and technology-driven working world.

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