What does the construction labor shortage look like?
According to a proprietary model developed by Associated Builders and Contractors (ABC), in 2024 the construction industry will need to hire an estimated 501,000 additional employees. This is on top of the normal labor hiring already required in 2024.
“ABC estimates that the U.S. construction industry needs to attract about a half million new workers in 2024 to balance supply and demand,” said Michael Bellaman, ABC president and CEO. “Not addressing the shortage through an all-of-the-above approach to workforce development will slow improvements to our shared built environment, worker productivity, living standards and the places where we heal, learn, play, work and gather.”
How are these numbers predicted?
ABC states that their model, “uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s Value of Construction Put in Place Survey, and payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction labor at a rate of approximately 3,550 jobs per billion dollars of additional spending. This increased demand is added to the current level of above-average job openings. Projected industry retirements, shifts to other industries and other forms of anticipated separation are also embodied within the computations.”
What does this mean for the construction industry?
In order to grow the construction industry at the rate production demands, we must continue to train, educate and encourage our younger generation to join the trades.
“Meanwhile, structural influences persist,” said ABC Chief Economist Anirban Basu. “More than 1 in 5 construction workers are 55 or older, meaning that retirement will continue to contract the industry’s workforce. These are the most experienced workers, and their departures are especially concerning.”
To offset this structural setback, ABC, suggests educating our youth through apprenticeships, internships, and programs that encourage hands-on learning and sparks interest in the field. Yavapai College has numerous programs for construction building technology, carpentry, plumbing, electrical, and more. Yavapai College also operates a Skilled Trades Center in the Verde Valley to educate the workforce in Yavapai County.
Talking Glass Media featured the Career and Technical Education (CTE) programs that Yavapai College offers. The TG Magazine highlights the Career and Technical Education Center in Prescott, Arizona, home to many of the CTE certificate programs offered by the college, especially those programs that require a significant amount of physical space.
