Understand The Construction Industry’s Labor Shortage and Make It Work For You

Three light bulbs featuring dollar signs, representing the lucrative opportunities for contractors with a license.

Ever since the housing crisis, the construction industry has faced a significant shortage of skilled workers in a variety of fields. With this information, you will understand the extent of construction’s labor shortage, and what that might mean for your future in the industry.

Why Is There a Labor Shortage in Construction?

The housing crisis dealt a terrible blow to the construction industry, with effects that are still felt today. When home prices crashed and few people could afford to get loans on the banks’ new stringent lending standards, the demand for housing changed significantly. This led to about 2 million people in the construction industry losing their jobs. When the market for new real estate began to rebuild, many of these people did not return to construction. Even though the housing market seems to be growing quickly now, experts estimate that there are still about 1 million fewer people in the industry than in 2006. As the market continues to expand toward its former levels, builders are noticing that they struggle to fill certain positions needed to complete construction.

How Many Jobs Are Vacant?

It can be difficult to put concrete numbers on the shortage. It depends on the local markets, particularly to the demand for real estate, builders with access to property, and the number of qualified workers in the area. However, experts believe that there may be as many as 150,000-200,000 positions for skilled workers in different parts of the construction industry that are continually going unfilled. This shortage relates partially to a loss of labor during the housing crisis, but also to the retirement of experienced professionals. Without new workers with the proper training and experience needed to take the places of those who are leaving the field, it is possible that the problem could get worse.

Are Construction Businesses Succeeding Despite This Shortage?

Although it might seem that a lack of skilled workers could put a stop to a lot of building projects, the truth is a little more nuanced. In many cases, contractors and builders can still gain access to the workers they need to complete their projects. They may just have to wait longer or pay more for the privilege of taking advantage of someone’s services. In fact, about 93 percent of contractors said that they expect to make as much or more than they did in 2017. A contractor’s chief worry in light of this labor shortage is worker skill and knowledge. If you need to subcontract or hire people for certain positions, you may have to prepare to pay more or take a chance on someone with less experience.

What Kinds of Positions Are Most in Demand?

As with any kind of labor shortage, the total numbers may not tell the entire story. There may be many people coming in with limited training who do not experience high demand for their services. In those instances, what they are trained or licensed to do is easier for contractors and builders to find when they need it. Nationwide, some trades that are particularly hard to fill include:

People who have completed their education and training in these fields may discover that it is much simpler to secure a regular clientele.

How Can Contractors Maximize Their Potential?

Entering the construction industry in the middle of this labor shortage could be an exciting time for people who focus their studies in the fields that are likely to have the greatest benefit. Do some research on the kinds of jobs that are consistently going unfilled in your area, and see if they might be the right choice for you. If you can develop a wider variety of skills (and the licensing that goes along with it), you will probably enjoy a higher rate of pay and better job security for the long haul.

The construction industry is still rebuilding after the housing crisis, but you can ride that wave to success. If you invest your time into starting a career that is higher in demand, you will be ready to meet the challenges of the industry with the skills that everyone will readily appreciate. To find out more about the construction career that is ideal for you, contact CSLS today!