What's Causing the Labor Shortage in the Construction Industry?

Posted On Monday, 26 September 2022 17:41

The construction industry is growing at an unprecedented rate, providing excellent job opportunities, and calling for new and young talents. And yet, the entire national sector is suffering from a shortage of skilled professionals, and firms are struggling to fill thousands of positions across various sectors. 

But what is causing this labor shortage? And what can the industry do to fill the widening gap? In this guide, you’ll find more about the state of the US construction industries and what strategies companies need to guarantee the sector a brighter future. 

An Outdated Job Reputation and Lack of Knowledge of What To Expect From Construction Jobs

One of the main reasons why young talents avoid starting a career in the construction sector is widespread ignorance about what the job entails, what pays to expect, and the level of risk workers face on a construction site. 

But while these misconceptions certainly contribute to widening the already-growing labor gap, they can be easily addressed by construction companies and employers through their hiring efforts and outreach campaigns (i.e.: in schools and other educational settings).

A Widespread Preference for College Education Over the Skilled Trades

Another reason behind the state of today’s construction industry is a marked preference for college education over skilled trades. 

While this trend originally gave students access to higher-paying job positions, today the competition among graduates is fiercer than ever, and over 44 million Americans deal with the burden of student debt - which they’ll take an average of over two decades to pay back.

While 70% of parents still advise their children against starting a career in construction, this sector is now providing unprecedented job opportunities, multiple entry points, and high salaries. 

The Need for Better, More Efficient Training Strategies

Training new recruits and young talents represent a pain point in any industry and any company. But, in the construction industry, training is even more important.

With construction job training systems such as Construction Ready, companies can now gain access to fully funded training programs that allow them to form and shape new talents. What’s more, these programs allow young professionals to hone their skills, access the industry at a higher point, and get the chance to be hired by some of the most prestigious employers in the industry. 

In turn, hiring highly-trained professionals and offering uninterrupted on-the-job training is essential to improve construction efficiency, create a safer job site, and help talents develop their skills. 

High Rates of Physical Injury and Low Benefits and Resources

Unfortunately, today, the construction industry is still one of the sectors recording the highest number of workplace fatal and nonfatal injuries. However, a lot can be done to boost safety measures and safeguard the workers - starting with training, risk assessments, and compliance. 

At the same time, thanks to recent measures, the construction industry has never been safer, and new recruits might have the chance to establish a safety-first culture within their new workplaces. 

Make sure to inform candidates about the safety measures you have in place and the benefits and rewards your company is offering to its employees!

A Generational Change That Is Leaving Behind Widening Gaps

One of the main steps construction companies and their HR departments should take during a worker shortage is to look at the macro trends reshaping the industry as a whole. Today’s construction labor shortage has been fuelled by multiple trends, including a radical generational change. 

Indeed, more experienced and senior workers are reaching the end of their careers and getting ready for retirement, which has left over 62% of construction firms struggling to find the right replacement for the human capital they are about to lose. 

To find a solution to this pattern, it is important to look at the potential held by those students who are still in school. 

Outreach programs can help students make better-informed decisions about their educational journey and career path, and can encourage them to choose a STEM education or skilled trades schooling. Get in touch with a local school to start building the workforce of the future!

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