The construction business is like a trap: jobs have fallen, and if they do, there is a shortage of workers

The tension remains

Late March Delphi Representatives of the construction sector interviewed said that restrictions on entering the construction business in Lithuania became a headache. It is no secret that a significant portion of workers in the construction sector are citizens of Belarus or Ukraine, so during the peak of the construction period, the construction business lost part of its workforce.

Dalius Gedvilas, president of the Lithuanian Builders Association (LSA), said at the time that the workforce was shrinking, as part of the workforce that had come from Ukraine or Belarus had already returned to their home countries.

“This will have an impact: the demand for construction workers was up to five times greater than last year’s supply,” he said.

Today, after Lithuania lifted its quarantine but still restricts access to our country from some countries where the incidence of coronavirus is still very high, including Ukraine and Belarus, the president of LSA says that the situation in the construction sector continues being difficult.

“During the quarantine, those foreigners who had residence permits could return to Lithuania. However, those who had obtained work visas were not allowed, and the latter were the most numerous. Some construction companies have faced a problem: Due to government-imposed restrictions, workers from Belarus and Ukraine cannot return to Lithuania, and when they can, they must remain in quarantine for another two weeks. In addition, some workers who return to their countries of origin during the quarantine period expire their national work visas, ”says D. Gedvilas.

Mindaugas Statulevičius, head of the Lithuanian Real Estate Development Association, who said in late March that certain real estate projects may be stagnant due to the lack of employees in some specializations, today also ensures that the situation in the construction sector remains hard.

“As some Belarusian and Ukrainian citizens have had to go to their home countries and the pandemic situation in Lithuania is better than there, the restrictions on return are high. For example, there are not even flights from Ukraine and there are no plans for This arrival is hampered not only by air but also by land. Many of those workers generally pass through Poland, but the Ukraine-Poland border is still guarded. There is also a mandatory 14-day self-isolation in Poland for those coming. from Ukraine and in Lithuania for those who come from Ukraine through Poland. This situation is not easy, “emphasizes the interlocutor.

According to M. Statulevčius, the construction volumes of some companies have been reduced and this allows them to deal with available employees, but their costs and working hours are more expensive.

“It just came to our attention then. It is expected that during the summer employee mobility will recover and employees can return, because there is such a desire,” says the LNTPA chief.

Personal lack in certain specializations.

According to D. Gedvilas, president of the Lithuanian Builders Association (LSA), the labor market in the construction industry now lacks the most specialized specialists, such as specialists in outdoor communication installation, metal frame installers, installers highly qualified plumbing and piping, scaffolding and welders. Construction companies in the country do not feel the lack of specialists in general construction works, such as finishes or plaster, due to the reduction in workload.

Arvydas Avulis, head of real estate developer Hanner, also agrees that there is currently a shortage of employees in the construction sector of some specialization in Lithuania. Therefore, according to him, developers are looking forward to when the Belarusian and Ukrainian workforce will be able to come to Lithuania.

“There are jobs that don’t really need Ukrainians and Belarusians, but there are some that we are really looking forward to finding.” For example, we have an object in the old town and you need to install a pitched roof, workers are missing for that job, because pitched roofs are usually installed for private homes. It is more favorable for them to work in individual houses, because there are cash payments, less control, etc., that is why we compete a lot for workers with such specialization. And we are terribly waiting for the people of Belarus and Ukraine to help us with that work, ”says A. Avulis.

Despite the fact that some specialists from the East are very welcome, for some in Lithuania, according to D. Gedvilas, it is likely to be much more difficult to find a job.

“Almost 80 percent. Companies have indicated that they no longer plan to hire new third-country staff this year. This indicates a situation on the labor market in the construction sector, since before the pandemic, the demand for workers In this sector it was always greater than the offer. For comparison, we can remember that in 2019. In the first half of the year, the number of vacancies in the construction sector was more than five times greater than the number of people employed therefore third-country workers became a real survival for construction companies, “recalls D. Gedvilas.

Are emigrants not filling the void?

When the world closed its borders, its citizens began to flow to their home countries. Lithuania was no exception. In fact, according to A. Avulis, head of real estate developer Hanner, some of the builders who worked abroad in this sector returned to Lithuania when the coronavirus started.

“A sufficient number of builders have left Lithuania, working mainly in Scandinavian countries, some in France and Germany. When the coronavirus started, some of them actually returned here. But when they returned to Lithuania, the other half, some immigrants, mostly of the cases of Belarus and Ukraine, they left. This is how the market balances, “emphasizes A. Avulis, adding that when the states gradually open their borders, the Lithuanians leave again and the Ukrainians and Belarusians still cannot come.

“When the borders are opened, we believe that we will return to a scenario similar to a year ago, that Lithuanians will move to Scandinavia and other EU countries again, and we are waiting for some builders to arrive from Ukraine and Belarus,” says A Avulis.

LNTPA chief M. Statulevičius, for his part, says he is not surprised that migrants returning to Lithuania are quick to apply to real estate companies to work, and commercial companies are more inclined to seek sustainable labor relations. and long-term, as people who return to Lithuania during quarantine are ready to leave. It will be an opportunity.

“There is no trend for Lithuanian emigrants who have returned to Lithuania from other countries to apply for jobs in the construction sector. If there are any, they are units, because most of the returning workers still hope to go again, to return to the country where they work. They may be interested only in seasonal seasonal work, on farms during the summer, “says the head of the LNPTA.

Construction volume decreased

However, the shortage of workers in some specializations is not the main problem facing the construction sector today. According to D. Gedvil, president of the LSA, the workload also decreased during the quarantine period, so some companies had to release even a part of the remaining employees.

“A survey of companies in the construction sector by the Lithuanian Builders Association in May showed that almost 65 percent. During the company quarantine period, companies declined due to reduced workload due to the suspension of private and investment projects, “says the LSA president.

Due to the announced mandatory quarantine, according to the interlocutor, in the last two weeks of March, around 7 percent. the population did not work or worked fewer hours than usual. According to the Department of Statistics, the construction and services sectors were the most affected by the quarantine, where the level reached 12%, respectively. and 8 percent. This increase in the unemployment rate in the construction sector was influenced not only by the return of Ukrainians and Belarusians, but also by the reduced volume of work due to the suspension of private and investment projects.

A. Avulis, the head of real estate developer Hanner, also notes a decrease in work orders. Although the company itself does not reduce workload, he said, it is much easier to negotiate construction prices at this time.

“We have seen that it is easier to talk to contractors, to negotiate prices, because the prices of construction works grew by an average of 10% each year, so this year we made the decision that there will be no higher prices this year. That the last year”. And we are lucky enough to still talk, and this year we have the first year that we will not see an increase in construction prices. This shows that the supply of labor in the market was greater than the demand ”, emphasizes the interlocutor.

Request state orders

According to the interlocutors, the future of the construction sector in Lithuania currently looks bleak. According to D. Gedvilas, construction companies are doing everything possible today to preserve existing jobs and avoid optimization, but future prospects are still difficult to predict, as much will depend on state actions and the speed of their implementation.

“When the state announces an increase in the construction and acquisition of infrastructure to stabilize the economy in this period of crisis, the Lithuanian Association of Builders proposes to adjust the acquisition procedures to avoid such infamous cases as the construction of the Kaunas stadium or the rebuilding Gediminas Hill and protecting public money. ” interlocutor.

LNTPA chief M. Statulevičius assures that it is too early to speak about the consequences of the current situation, but if such situation persists, the consequences of certain can be clear. It also emphasizes that the construction sector should currently be assisted by the state.

“There could be some consequences, such as the workers themselves who expect wages to rise as labor costs rise, and there could also be several consequences for the price of a product. Of course, local solutions are sought, but if there is an impact Significant across the market, there could be consequences. But very early. Government orders are expected, as this would increase employment. Because developers have suspended work, orders and Lithuanian employees must be withheld. These state orders they should speed up and solve short-term problems for companies, ”says M. Statulevičius.

According to the Migration Department, during the quarantine period, 1,088 Belarusian citizens applied for a national visa based on work, of which 1 Belarusian citizen applied for a national visa upon arrival in the Republic of Lithuania, and other Belarusian citizens through diplomatic missions or consular posts of the Republic of Lithuania.

544 Ukrainian citizens applied for a national visa on the basis of work, of which 48 Ukrainian citizens applied for a national visa upon arrival in the Republic of Lithuania, other Ukrainian citizens submitted these applications through diplomatic missions or consular post of the Republic of Lithuania.

During the quarantine period, 938 Belarusian citizens applied for temporary residence permits in the Republic of Lithuania in working condition (in June 190 applications for temporary residence permits were submitted in the Republic of Lithuania). 1,740 Ukrainian citizens submitted applications for temporary residence permits in the Republic of Lithuania on the basis of work (in June 334 applications were submitted for temporary residence permits in the Republic of Lithuania).

The Department notes that citizens of Ukraine and Belarus are subject to the same conditions after the end of quarantine, set out in the Government Resolution, as other foreigners arriving in Lithuania. They are currently subject to 14 days of self-isolation.