This Eurofound report analyses how the green and digital transitions are reshaping the EU construction sector, with a focus on employment, skills, work organisation and working conditions. While climate and digital policies create strong growth potential, the report highlights that structural constraints may limit the sector’s ability to fully benefit from these transitions.

Construction plays a central role in delivering EU climate objectives and addressing housing needs, yet the sector faces persistent labour shortages, an ageing workforce and declining employment in recent years. Looking ahead, significant job openings are expected due to both replacement needs and the creation of new roles linked to green and digital activities.

The report shows that digital technologies can improve working conditions by reducing physical strain, but their uptake remains uneven. A substantial share of the workforce will require reskilling and upskilling, particularly in areas related to energy efficiency, renewable energy systems, digital tools and circular practices.

Key barriers identified include fragmented value chains, limited use of green public procurement and insufficient coordination of green and digital targets. The report underlines the importance of effective social dialogue to support training, skills development and organisational change, ensuring that the twin transitions contribute to a more sustainable and resilient construction sector.