According to figures released by the Associated Builders and Contractors (ABC), the American construction industry may need to hire an additional 501,000 workers to keep up with demand. The US construction industry is experiencing a significant labor shortage, and Michael Bellaman, the president and CEO of ABC, stated that mobilizing all available resources is the best course of action to close the gap.
He goes on to say that the ABC predicts that the US construction industry will need to hire over 500,000 more workers this year to achieve a balance between supply and demand. The improvement of the common built environment, worker productivity, living standards, and the spaces where people work, play, study, heal, and, of course, congregate will all be slowed down if the shortage is not taken into consideration throughout the workforce development process.
The ABC model utilizes the historical correlation between payroll construction employment and inflation-adjusted construction expenditure growth. Using this data, the demand for construction labor is estimated to increase by nearly 3,550 jobs for every billion dollars in additional investment. This is in line with expectations for increases in construction outlays.
This number is added to the current level of above-average job opportunities, which also includes anticipated separations from the industry in the form of projected retirements, transfers to other industries, and other instances.
According to ABC’s analysis, 1.9 million construction workers are expected to quit their current employment in 2024 in order to work in other industries, based on historical Census Bureau Job-to-Job Flows statistics. About 2.1 million workers are expected to move from other industries to the construction sector, which could counteract this.
Noteworthy is the fact that for the second year in a row, the regional sector’s average unemployment rate was 4.6%. This coincidentally corresponds to the second-lowest recorded level. According to ABC, the average monthly salary of job opportunities remained historically high at $377,000 over the first 11 months of 2023. Contractors terminated employees at a significantly slower rate due to labor shortages than in any year from 2000 to 2020—the start of the data series—according to ABC. One factor is causing the labor gap, according to ABC Chief Economist Anirban Basu.
Read this to know how The Number Of Applicants For Construction Job Openings Plummets.
When it comes to supply and demand of construction workers, Basu believes that there are essentially two elements that influence the interplay,these two reasons contribute to the low numbers of young individuals pursuing careers in skilled construction: first, structural factors related to large retirement numbers and massive construction projects spanning several commercial and governmental sectors, and second are cultural considerations.
He continues, pointing out that more than half of construction workers are 55 years of age or older, meaning that the industry’s employment will shrink as more people retire. Since they are the most seasoned employees, it is definitely concerning when they go.
Based on the current state of the US construction industry, it is evident that there is a significant shortage of skilled workers, with many construction sites lacking the necessary workforce to meet project demands.
This shortage poses a significant challenge for construction companies, who must compete for a limited pool of skilled workers. To help address this challenge, construction companies can turn to Dynamic Staffing Services.
We are a leading construction recruitment agency that specializes in connecting construction companies with skilled workers. Construction companies may access a wide selection of highly qualified individuals, such as carpenters, electricians, plumbers, and more, by working with us.
Our expertise in the construction industry, combined with our comprehensive recruitment process, ensures that construction companies find the right talent to meet their needs and complete projects on time and within budget.
As a construction company, you can leverage the increasing demand for construction services in the US and overcome the scarcity of trained labor with us as your partner. For more details, contact us today at +91-11-40410000 or email enquiry@dss-hr.com.
Contact us today: Dynamic Staffing Services.
