So, are you seeing this in your business or your career—that in construction, the job market is still hot? If you’re a building contractor, are you having trouble getting employees? If you are a skilled trade person in construction, are you finding more job options and making more money?
The Current Landscape
One of the things that seems to be happening is that there’s still a shortage of qualified workers. Construction firms are adding an average of 166,000 jobs each month, which is above the 11,000 added monthly before the pandemic. That’s like a 50% increase in jobs. However, there are currently half a million unfilled construction jobs, creating a significant demand.
Reasons for the Shortage
This demand arises due to retiring workers not being adequately replaced. Construction work isn’t something you can start tomorrow; it requires skills and experience. While some may start as laborers, the majority of workers on a job site need to be skilled in areas like framing, insulation, roofing, plumbing, or electrical work. Some even require licenses. When these experienced individuals retire without replacements, it results in a shortage that takes years to backfill.
Impact of Housing Market Changes
Additionally, there is a change in the housing market. Despite fewer houses being sold, it’s due to supply-and-demand issues. Builders are striving to increase inventory to make more houses available for purchase. Currently, there’s a shortage of houses for resale, as people are hesitant to sell their homes with low mortgage rates. This situation is further contributing to the construction employment shortage.
The CEO of a construction company highlighted the challenges of retaining skilled workers. Good employees are constantly being recruited, sometimes for a little more money and sometimes for a lot more. This competition for talent makes it difficult for employers to plan construction jobs and workflows effectively.
Call for Insights
If you are in the trades, a contractor, builder, or a company related to construction, share your experiences in the comments. How is the shortage of construction employment affecting your income or impacting the workflow of your company in your jurisdiction?