Like many other industries, construction is currently experiencing record numbers in workforce shortages.
Associated Builders & Contractors' (ABC's) Construction Spending and Employment Forecast shows how desperately the construction industry needs qualified, skilled craft professionals to build America. In 2021, ABC predicted that the construction industry would need to hire 430,000 additional craft professionals on top of its normal hiring pace to keep up with industry demand. Just one year later, that number has increased by approximately 66 percent to 650,000 new workers required.
The Infrastructure Investment and Jobs Act that was passed last November will pump approximately $550 billion in new spending into our nation's infrastructure over the next five years. Qualified craft professionals are essential to efficiently modernize roads, bridges and other projects across the U.S.
ABC's proprietary model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau's Value of Construction Put in Place survey, and payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction labor at a rate of approximately 3,900 new jobs per billion dollars of additional construction spending. This increased demand is added to the current level of above-average job openings. Projected industry retirements, shifts to other industries and other forms of anticipated separation are also factored.
Based on historical U.S. Census Bureau Job-to-Job Flow data, an estimated 1.2 million construction workers will leave their jobs to work in other industries in 2022. This will likely be offset by an anticipated 1.3 million workers who will leave other industries to work in construction.
"An added concern is the decline in the number of construction workers ages 25-54, which fell 8 percent over the past decade. Meanwhile, the number of older workers exiting the workforce soared," said ABC's Chief Economist Anirban Basu. "According to the Centers for Disease Control and Prevention, the industry's average age of retirement is 61, and more than one in five construction workers are currently older than 55."
Now, more than ever, is the time for the next generation to consider a career in construction. According to the NCCER's 2022 Construction Craft Salary Survey, skilled craft professionals continue to earn high wages and their salaries continue to rise. Of the 41 construction positions surveyed, average annual salaries ranged from $49,920 to $98,965.
Since 2007, ABC Pelican has hosted Build Your Future Day for Louisiana high school students to learn about careers in construction. Build Your Future Day shows students the opportunities a career in construction can bring. Skilled craft professionals are offered competitive wages and many opportunities to advance their career in an industry that builds the places where they work, play, worship, learn and heal.
The need for highly skilled and trained craft professionals is at an all-time high and continues to increase. To fill the increasing number of vacant positions, we need to continue promoting the benefits and opportunities that come with a job in industry to the next generation.
I encourage you and your company to help fill this workforce shortage. Promote a positive and realistic image of the construction industry to the next generation of workers. Sponsor a career fair. Open up your work site by arranging for students to visit and see firsthand all of the amazing prospects in the construction industry. Reach out to your local high school, technical college or ABC chapter to see how you can get involved.
For more information and to download resources to reach and educate students, visit www.byf.org or contact David Helveston at (225) 753-2590 or dhelveston@abcpelican.com.
