Talent Gaps Impacting Switzerland’s Property Careers and Construction Jobs

Construction and property sectors share a close relationship, and with that, they are both sharing the same challenges. An ageing population and a lack of a new generation of talent in the construction industry are slowing property development, as are the economy and a plethora of languages. There isn’t just one solution to fix such a complex problem.

How can these problems be addressed? Our insightful guide explores the talent gaps that are impacting property careers and construction jobs in Switzerland. 

The Importance of Property Careers and Construction Jobs 

How Constriction Jobs Contribute to Switzerland

Economic Elevation 

Switzerland’s GDP is forecast to experience moderate growth in 2024, increasing from 0.8% in 2023 to 1.3%. Jobs in construction contribute positively to Switzerland’s economy. For example, significant projects like The Circle reportedly cost around CHF 1 billion. Furthermore, last year, total investment in construction saw an increase of 0.2% compared to the preceding year. 

Innovation and Sustainability in Construction 

Innovation is core to the Swiss construction sector, with a particular focus on sustainability. Presently, there’s an emphasis on energy efficiency and utilising ecological and renewable materials. Testament to Switzerland’s commitment to sustainability and the importance of construction jobs is a project like Greencity in Zurich. 

To illustrate the magnitude of this construction project, it’s comprised of 13 buildings and covers an area of approximately 8 hectares and has key sustainability in features like:

• Photovoltaic Systems: Ten buildings have solar panels which generate an output of more than 200 kWp. 
  
  

• Green Roofs: Aligning with Zurich’s green roof program, flat roofs that aren’t used as terraces are greened to promote diversity and support the urban ecosystem.  

Providing Employment

As mentioned above, construction workers are required to complete large-scale projects. The construction industry provides jobs for individuals with varying levels of skills. From manual labour roles to engineers, architects and project managers. A study from two years ago found that employment in industry, which includes construction, accounted for 20.7% of total employment in Switzerland. 

Infrastructure Development 

The construction sector is critical for the development of Switzerland’s infrastructure. Construction jobs are routinely underway to facilitate major projects like transportation networks, essential building work and energy facilities. Examples of these projects include: 

• The Northern Bypass Zurich: Known as ‘Nordumfahrung’ in German, this construction development is a crucial part of Switzerland’s A1 motorway system and plays an important role in managing congestion in and around Zurich. It’s estimated it cost CHF 1.55 billion to complete this construction project. 
  
  

• A9 Motorway at Vennes-Chexbres: This construction project saw the renovation of the A9 motorway in western Switzerland. Spanning approximately 230km in length, the A9 is crucial to the country’s motorway network, linking several cities and enabling domestic and international travel. Completing this cost around CHF 800 million.  

How the Property Sector Supports Switzerland 

Economic Benefits 

Switzerland’s desirable tax policies encourage investment and are a consistent source of economic support. Despite rising mortgage rates, the property sector still strongly aids the Swiss economy. Demand for real estate didn’t wane, and the cost of houses rose by 0.7%, along with owner-occupied homes at 1.4%. Two years ago, prices of condominiums increased by nearly 3.5%, with single-family homes seeing a rise short of 2.5%. 

Regional Development 

Various regions throughout Switzerland are experiencing growth because of the real estate market. In 2023, Graubünden and Upper Valais saw house prices soar up to 10%. Research indicates a trend of people willing to move to less central locations where housing is cheaper. This has resulted in suburban and rural areas seeing a surge in development. 

Investment Attraction 

Institutional investors, especially pension funds (both domestic and international), have substantially increased their real estate holdings. The total share of real estate assets held by pension funds has seen a consistent incline. Across ten years, it rose from 16.6% (CHF 90 billion) to 20.3% (CHF 177 billion). 

Impacting Employment 

The property sector provides ample construction jobs and attracts skilled construction workers from across the globe. This means that there’s a demand for high-quality properties. Furthermore, the influx of international talent benefits several sectors and the Swiss economy.  

Causes of the Current Talent Gaps 

A shortage of talent in important areas is impeding the property and construction sectors. There isn’t a single reason for this; rather, there are several causes, which will be discussed after highlighting the roles which are lacking sufficient personnel. 

Regression in Roles 

Technical Professionals 

Infrastructure is vital for a country to operate smoothly. Unfortunately, Switzerland lacks engineers, architects, and other experts in the construction sector. The Addeco Group Switzerland and the University of Zurich published The Swiss Skills Shortage. It discovered that in 2023, the skills shortage index increased by 24%, which represents an all-time high. 

This body of work recorded that a portion of technical professions feature prominently in the top ten of the skills shortage ranking. Compounding this, it argues that technical engineers are difficult to recruit. 

Skilled Tradespeople and Manual Labour 

Construction jobs need an array of professionals. However, there is a shortage of individuals which is hampering the industry. Demonstrating the demand for these roles, job vacancies increased by 10% in contrast to the first half of 2023. 

What are the Reasons?

As discussed, a combination of causes contributes to Switzerland’s ailing property and construction sectors. 

Demographic Shifts 

An ageing population means that there are more retirements in the construction sector. Adding further to this problem is that younger people are not interested in pursuing vocational careers. A disconnect between education choices and the growing demand of the labour market could explain this. Students prefer to learn about humanities instead of engineering and other technical programs. 

Economic Factors 

Finding relevant, experienced, skilled construction workers can be difficult due to Switzerland’s healthy economy and low unemployment rate. The construction sector is hampered further by a job market experiencing an 11% decline in overall job vacancies year-on-year. 

Language Barriers 

There are four official languages spoken in Switzerland: Romansh, French, German, and Italian. Many construction jobs and property careers require fluency in multiple languages, with German, French, and English being demanded despite not being an official language. 

Impact and Solutions  

The Effects 

Supply and Demand

Talent gaps in the property and construction sectors are leading to severe ramifications for Switzerland. Firstly, there is a supply and demand imbalance. Irrespective of the country’s economy and increasing population, housing construction is not meeting the current demands. These disproportions are driven by: 

• Immigration is adding to the population and need for housing. 

• Household sizes are becoming smaller, increasing the need for larger housing units. 

• New housing development has stalled due to reduced building permits and requests. 

Economic Ramifications

Economic consequences are far-reaching. Staff shortages could cost the Swiss economy a reported CHF 60 billion in 2025. As well as hindering the economy, the lack of skilled professionals also hinders innovation and technological advancements. The lack of skilled construction workers also slows housing development, meaning the property market sees inflated real estate prices and rent.  

Solutions 

Attracting and Retaining Skilled Construction Workers 

Geographically, Switzerland has several neighbouring countries that can attract skilled construction workers. While Switzerland has low unemployment rates, conversely, France and Italy suffer higher unemployment rates. By relaxing cross-border processes, Switzerland could have access to talent to fill roles in construction and property development. 

Improving Working Conditions 

Construction jobs are often negatively perceived, particularly among younger generations who view it as arduous work. Efforts must be made to make the constructor sector more appealing: 

• Offer better salaries. 

• Working from home is not always possible, so providing a better work-life balance is important. 

• Ensure a safe working environment. 

• Create routes for progression. 

Education and Training 

Collaboration with educational institutions is critical to igniting interest in the construction and property sectors among the young. As mentioned, students tend to lean toward humanities rather than engineering subjects. Campaigns that make students aware of the benefits and rewards of construction jobs could challenge this trend.

Utilise Construction Technology 

Investing in technologies and tools could reduce the need for manual labour. For example, Building Information Modelling (BIM) and prefabrication techniques are becoming more prevalent. As construction projects become more dependent on technology, it is important to recruit professionals with the relevant skills and offer construction courses that cover technological aspects to current workers. New technologies can significantly enhance sustainability in construction. 

In-Demand Construction Technology Skills 

Construction technology is prominent in the construction sector, and digital skills are becoming increasingly necessary. Contemporary construction workers will be proficient in the following: 

• Building Information Modelling Software (BIM): This technology creates detailed 3D model of a building’s physical and functional features. 

• Project Management Tools: Software such as Procore assists with document and drawing management, RFI tracking, and has tools for financing. 

• Computer-Aided Design (CAD) Programs: CAD helps architects, engineers, and designers in making accurate digital models and drawings. 

Emerging technologies are shaping how construction jobs are completed. Therefore, knowledge of these developments is essential: 

• Virtual and Augmented Reality to assist with visualising designs. 

• Drone technology to conduct site surveys. 

• 3D printing for prototyping and carrying out small-scale construction. 

Final Say: Talent Gaps Impacting Switzerland’s Property Careers and Construction Jobs

Property careers and construction jobs are pivotal for Switzerland’s economic and infrastructure development. Whether it’s directly contributing to the GDP or supporting innovation that supports sustainability, these sectors are vital for the health of the country. 

However, talent shortages, especially in technical areas and manual labour, are halting economic progress and causing project delays. Solutions are paramount. This could be through attracting international talent, improving working conditions, or promoting careers in construction and property in education. 

Do you Need Property and Construction Recruitment Solutions?

W Talent has the agility of a startup and the financial backing of a large group, meaning that we and our strategies are unique and effective. Our consultants have a wealth of experience that’s complemented by industry knowledge and an extensive network. 

Whether you're a startup or a multinational company, we can support your recruitment needs and steer you to success. To discover how, visit our dedicated page here or contact us today.