Spanish Construction Firms shed 76,000 Jobs Since Pandemic, Facing Labor Challenges
Madrid – Major Spanish construction companies – Sacyr, ohla, and Ferrovial – have collectively reduced their Spanish workforce by 76,000 employees since the start of the pandemic, representing a 31% decrease, according to a recent analysis of company data. This downsizing coincides with a broader shift towards international markets and increasing concerns over proposed labor regulations.
Sacyr has dramatically reduced its Spanish workforce, currently operating with 5,343 employees compared to 28,700 at the end of 2019 – an 81% reduction. the group chaired by Manuel Manrique has seen a 65% decrease in personnel across all markets, now employing 15,239 workers. Personnel spending has also decreased, falling to €714 million last year from €1,187 million in 2019. This restructuring followed the sale of Valoriza Servicios Medioambientales to a Morgan Stanley fund and the transfer of Sacyr facilities to Serveo in December of the same year.
Ohla has also undergone significant workforce adjustments, reducing its global headcount from 18,782 to just under 15,000. The most substantial cuts have been in Spain, where employment has plummeted from 9,500 in 2019 to less than 2,500 – a 74% decrease.Concurrently, Ohla has expanded its international presence, increasing its workforce abroad by 35% to 12,500, with strategic focus on North America, the Czech Republic, Chile, and Peru. The company, chaired by Luis Amario, is currently in the process of selling its services division, headed by Ingesan.
These workforce reductions are occurring against a backdrop of debate surrounding proposed changes to overtime regulations. The national Construction Confederation (CNC) has voiced strong opposition to a royal Decree planned by the Ministry of Labor, arguing it would threaten the State Housing Plan 2026-2030 and the execution of European recovery funds.
The CNC, representing 1.3 million construction workers in Spain, warns that limiting overtime to 80 hours annually – compared to a European Union average of 450 hours – “would only worsen the already unfair limitation and the rigidities that already exist in Spain.” The organization claims this limit could reduce worker salaries by up to 27%, or approximately €7,000 per year.
Pedro Fernández Alén, leading the CNC, highlights a current shortage of 700,000 workers in the sector. The CNC advocates for focusing on controlling the execution of overtime, ensuring proper documentation and payroll reflection, and allowing for negotiation between employers and unions – a practice common throughout Europe.
sector data indicates that labor costs in Spanish construction are currently at a ancient high of approximately €3,300 per worker, exceeding the average across all sectors.This, coupled with the workforce reduction, presents significant challenges for the industry as it navigates a changing economic landscape and ambitious infrastructure projects.