America’s builders are looking at jobs data that’s anything but promising. Recently revised job growth numbers from the Bureau of Labor Statistics show a downturn of 911,000 jobs. Some industries are not nearly as affected as construction, which continues to try to find qualified workers to fill open positions. And the lack of workers is being felt top-to-bottom throughout the industry, from developers and general contractors to subcontractors.
According to Associated Builders and Contractors, construction needs to hire more than a half-million additional workers this year, as demand increases. Adding to the crisis is construction has older, retiring workers and those exiting the industry for various reasons, leaving hiring managers scrambling to find quality replacements.
Construction is a hands-on business, requiring manual labor to get the job done. Whether it’s laborers, apprentices, carpenters, or skilled tradespeople, construction projects need people who can physically show up and complete the job. When those workers are missing, timelines slip, costs rise, and in some cases, projects grind to a screeching halt.
Filling Entry-Level Jobs is Not Easy
One of the most difficult aspects of the labor shortage is not in upper-level management, but in entry-level positions. Companies say basic labor roles, once a foot-in-the-door opportunity for many breaking into the industry, are now increasingly difficult to fill.
Several key elements that are contributing to the shortage:
- A workforce that’s growing older. A majority of experienced workers are approaching retirement age, leaving fewer mentors and a growing skills gap.
- The younger generation is not labor focused. Fewer high school graduates are not choosing construction, with many opting to go to college instead.
- Other industries are very competitive. Careers such as warehousing, logistics, and hospitality often attract entry-level workers with comparable pay and conditions that are less demanding.
- Turnover is high. Even when workers come into the construction industry, many don’t last longer than a few months, forcing the need for retraining while job productivity suffers.
This never-ending cycle is placing tremendous strain on builders who rely on steady, reliable crews to meet deadlines.
Across the Board Ripple Effect
The shortage is not only a workforce issue, but also a business challenge. General contractors and developers are already seeing projects suffer, with higher costs and longer delays:
- Timelines stretched too far causing missed deadlines that lead to client and investor frustrations.
- Rising costs as firms pay premiums for available labor or face penalties for late delivery.
- Capacity that’s reduced, with some contractors turning down work due to lack of qualified labor.
- Housing affordability pressures, with supply struggling to keep up with increasing demand.
Seeking Solutions
Builders are now having to take a serious look at alternate plans to bring new workers into the industry, with retention a leading priority.
- In order to bring younger workers into the industry, training and apprenticeships are being expanded for shorter lead times within hiring processes.
- For veterans, individuals who’ve been formerly incarcerated, and other underrepresented groups, second-chance hiring programs are creating new opportunities that benefit the entire construction industry.
- In order to compete with other industries, non-traditional benefits such as tuition reimbursement, on-site childcare, and career progression pathways are moving construction into the mainstream.
- Immigration-based hiring channels, such as the EB-3 visa program, are being looked at as a way to stabilize entry-level positions with committed, long-term employees.
While there is no magic formula to help close the gap, companies adopting multi-layered strategies will be better positioned to build and maintain a dependable and diverse workforce.
Looking Ahead
If left unresolved, the shortage will continue to erode profitability and slow growth. Infrastructure investments may fall short of their potential, developers may hesitate to expand, and affordability challenges will deepen as projects are delayed.
Builders who take workforce planning seriously and adopt bold, creative solutions can overcome today’s labor challenge and position themselves for a stronger future. Meeting this crisis requires the same qualities that have long defined the industry: problem-solving, determination, and the ability to build not just structures, but opportunities for growth.
