The construction industry’s need for new workers now exceeds 546,000 according to a new study.
A proprietary model developed by the Washington-based Associated Builders and Contractors indicates that while construction employment has generally been consistently on the upside for the last two years, the numbers of those employed are still too low to meet current needs.
That model, looking at the historical relationship between construction spending growth and employment, assumes the need of roughly 3,900 new jobs for every $1 billion in new construction spending.
In a statement, Anirban Basu, chief economist with ABC, noted that “many contractors continue to experience substantial demand from a growing number of mega-projects associated with chip manufacturing plants, clean energy facilities, and infrastructure.”
But at the same time, added Basu, there remains too few younger workers entering the skilled trades, “meaning this is not only a construction labor shortage, but also a skills shortage.”
While entry-level construction workers have accounted for roughly 4 out of every 10 new jobs, the number of skilled construction workers has grown much more slowly. And in some segments of the industry, since as carpenters, it has actually decreased.
The matter is only expected to worsen as more and more members of the Baby Boom generation retire in the coming years.
The ABC study indicates that in order to meet industry demand, there will need to be at least 342,000 new workers hired by 2024.
By Garry Boulard
