Dynamics of Labor Productivity in the Construction Sector in EU Member States (2015-2023)

Abstract

Labor productivity is a critical measure of employee efficiency in any industry and a driver of economic growth in any country. The Construction sector is at the heart of urbanization and sustainable practices in the European Union and its performance is directly linked to labor productivity – a measure of the sector’s ability to deliver projects on time and within budgets, while maximizing the use of resources. The purpose of this article is to examine the importance of labor productivity in this sector as supporting housing, basic infrastructure and sustainable development goals both in individual member states and in the European Union as a whole. By comparing this indicator across countries and conducting in-depth analysis, the authors of this article aim to identify key trends and good practices contributing to differences in labor productivity. Significant challenges such as an aging workforce and employee skills shortages are outlined, all which impact on labor productivity. Its increase in the European construction sector is essential for achieving the objectives of the community, increasing its competitiveness and economic sustainability.