The strong pace of activity in early 2025 was also evident in the labour market, which hit a new record in April, with nearly 460,000 people employed in the sector, according to official data. This increase highlights sustained demand for skilled labour, particularly in regions where major infrastructure projects are underway. However, persistent skills shortages and rising costs – both regarding wages and construction materials – continue to pressure companies, making it increasingly difficult to maintain the current pace of work.
“2025 started on a strong note for the construction sector, with activity running high and momentum building rapidly. However, in recent weeks, we've noticed signs of a potential slowdown ahead, which lines up with what we are seeing coming from other sources, like Eurostat surveys. The decline in new orders, combined with increasing caution among industry players, suggests that the early-year enthusiasm may not be sustainable in the long run”, explains Alexandru Atanasiu, Board Member & Head of Construction Services at Colliers.
Colliers consultants caution that the fiscal consolidation measures being considered by the authorities could significantly slow the pace of public investment, particularly in infrastructure, the main growth driver for the construction sector in recent years. Without a steady pipeline of public projects and amid a private sector that is taking a more nuanced approach with regards to the medium term economic outlook, the entire sector risks losing momentum. In this context, unblocking and accelerating investments funded through the NRRP and other European sources is essential to maintaining the current pace and supporting companies operating in the sector.
“The construction sector has a unique dynamic: it can brake suddenly, like a small car, but it accelerates slowly, like a truck. That’s why predictability and consistent public investment are essential to maintain momentum and support the entire industry. Without a clear timetable and stable funding, the companies in the sector are likely to scale back their development plans, leading to knock off effects on employment, production of materials, and other adjacent sectors”, adds Alexandru Atanasiu.
Although the year began on a positive note, with high levels of activity in the construction sector, developments in the second half of 2025 could be shaped by several factors that warrant a cautious outlook. Fiscal stability, the ability to absorb and efficiently utilize European funds, including those from the NRRP, and the continuity of public infrastructure investment will be critical in sustaining growth momentum. Without a predictable framework and consistent funding, the industry risks stagnating, which would have direct consequences on the labor market, businesses active in the sector, and, ultimately, the broader economy.
