Staff shortage Jeopardizes Spain’s EU-Funded Recovery Plan

The end of Spain’s decade long housing boom spectacularly bust in 2008, taking with it about 1.8 million jobs, sending the country into recession.

Now an unprecedented labor shortage is jeopardizing multi-billion euro building and renovation projects funded by the European Union to help Spain’s economy recover from COVID-19.

The country is short of at least half a million building workers, according to unions and companies. Firms are training new staff round the clock, paying better, and leaning on migrants from Latin America and African countries.

Despite the keenness of workers to work, at least seven out of 10 construction companies had to turn down contracts in 2021 due to lack of staff, according to preliminary data of a survey from Spain’s main building association. That is before the first 5 billion euros ($5.65 billion) in housing rehabilitation funds go to tender this spring.

After Italy, Spain is receiving the most EU aid: around 140 billion euros ($166 billion), half grants, and half loans. The government is pinning hopes of 7% economic growth this year on the funds, but red tape, material shortages and labor gaps are hampering investment.

Spain had almost 3 million real estate workers before the 2008 implosion, after which many diverted into the equally massive tourism sector. They now seem reluctant to return.

With the massive need, employers, unions and the government have clubbed together to run free training courses for would-be builders. This drew 90,000 people in 2021,but the target has shifted to 200,000.

Francisco Dieguez, director of a training institute in Catalonia, said a construction worker’s typical annual salary of 24,000 euros surpassed some architects’ wages.

Most other manual workers are on about 18,500 euros. Many still blame the 2008 housing crash for how difficult it is to attract workers, even with improved pay.

Spain is second only to Greece for unemployment in Europe, with nearly one in three young people out of work. A survey of those aged 15-29 in work last year found that 11% were working on building sites.

“Here in Spain they say that if you don’t study you have to be a bricklayer, as if it were a punishment,” said Sergio Estela, a leader at Spain’s General Workers Union (UGT-FICA).

Crane operators, carpenters, welders and site managers are most scarce, according to a dozen sources from unions and companies, because they require officially accredited training.

Ismael Lazaro, a 24-year-old Spaniard, took a welding course after losing his job as an Amazon delivery driver. He is the only one among his friends trying to enter construction. “My mother told me there was a lot of demand for welders,” he said.