It’s no secret the construction industry has been experiencing a labor shortage. Demand and growth have rebounded over the years, but many firms still struggle to find skilled workers.
The root of the skilled labor shortage points to a couple of factors, including a large number of workers entering retirement and an academic emphasis on white-collar jobs. Businesses are looking to solve the issue by exploring new ways to recruit workers, and some are increasing overtime opportunities for current employees.
As they head into 2020, construction professionals should assess the industry today and the factors that may impact it in the coming years.
The current state of the construction workforce
An analysis of timesheets from more than 28,000 construction companies found half of construction workers clocked overtime between May 2018 and May 2019. Those who clocked overtime worked more than nine overtime hours each week. Another analysis shows that, across the board, U.S. workers were more productive in 2019. Year-over-year gains sat around 2.4%—the highest in a decade—according to the U.S. Labor Department.
But as any construction professional knows, recruitment is difficult. The challenges it presents can have a direct impact on the business’s bottom line due to increased costs and extended project timelines. And increased pressure on the current workforce has a price.
Signs indicate that a mix of unskilled laborers and increased overtime hours may contribute to a rise in work-related injuries in construction. Fatal work-related falls in the industry increased every year from 2011 to 2016—except 2015. The industry also has the highest suicide rate across all industries, according to a 2018 report from the Centers for Disease Control (CDC). The CDC attributes the rate to unstable employment, financial stress and relationship issues associated with work in the field.
The future of the construction workforce
The demand for workers isn’t slowing, so long-term solutions are necessary to return the industry to a balanced state. One crucial part of the solution is making construction more attractive to workers entering the workforce. To improve recruitment among the emerging workforce, firms are offering better compensation and benefits and investing more in training for all employees.
Labor is often the most variable cost in construction projects. So it makes sense that builders are looking for opportunities to automate and use more labor-saving equipment. But the industry is far from full-scale automation. Maintaining a focus on driving interest in construction as a professional path will remain necessary until the labor force reaches an ideal state.
Driving early interest in the field is one tactic construction firms are using to improve the outlook of the industry. “College internships and apprenticeship programs can serve to create a new perception of the construction industry—one that includes a long-term career with management opportunities,” suggests a Golden Peiser and Peiser article. The article also highlights opportunities to drive recruitment among veterans. Other avenues for recruitment include hiring women workers and engaging in school outreach programs.
Growth isn’t out of reach for the construction labor force. But as the state of work shifts with employment trends, the industry needs to reassess outdated methods for cultivating a workforce. New generations of workers have different perceptions and expectations for their careers, so changes to the state of labor won’t come quickly. But overcoming the problem is no small feat. Creativity and a focus on problem-solving in the long term are essential.
