The U.S. construction sector is facing a severe labor shortage, needing an estimated 546,000 additional workers in 2023 to meet demand. Job openings in construction have reached record levels, with high backlogs and a low unemployment rate of 4.6%. The industry struggles with an aging workforce and cultural perceptions that dissuade young people from pursuing construction careers. Despite lucrative pay, with construction jobs offering 80% more than average non-farm jobs, the lack of applications persists. Efforts are being made to attract a diverse workforce, including women and youth, and discussions about immigration policy are crucial to alleviate the shortage. The recent infrastructure bill has allocated funds for projects, but not for recruiting and training new workers, exacerbating the existing labor challenges.
| name | description | change | 10-year | driving-force | relevancy |
|---|---|---|---|---|---|
| Decline in Construction Job Applications | Online applications for construction roles dropped 40% during the pandemic and remained flat. | From high application rates to a significant decline and stagnation in interest in construction jobs. | In 10 years, construction may struggle further with labor shortages if interest does not improve. | Cultural perceptions that prioritize college degrees over vocational training have negatively impacted interest in construction careers. | 4 |
| Aging Workforce | The construction labor force is aging, with many workers retiring early due to physical demands. | From a balanced age demographic to a skewed older workforce leading to shortages. | In a decade, the construction industry may face a critical lack of experienced workers due to retirements. | The physically demanding nature of construction work discourages younger individuals from entering the field. | 5 |
| Cultural Shift Against Construction Careers | Societal views discourage young people from pursuing construction jobs, favoring college degrees instead. | From valuing vocational training to a strong preference for academic paths, limiting workforce supply. | In 10 years, if perceptions do not change, construction may remain unattractive to new generations, exacerbating shortages. | Long-standing societal messaging emphasizes college as the only path to success, alienating trades. | 5 |
| Increased Pay in Construction | Construction jobs are now paying significantly more than average non-farm jobs, attracting some workers. | From average pay scales to booming salaries, creating a workers’ market in construction. | In a decade, sustained high wages may attract more individuals to construction if paired with improved conditions. | The tight labor market and high demand for construction projects drive up wages to attract workers. | 4 |
| Efforts to Diversify Workforce | Programs are being implemented to recruit more women and diverse workers into construction. | From a predominantly male workforce to a more inclusive recruiting focus addressing labor shortages. | In 10 years, increased diversity may help mitigate labor shortages in construction by expanding the talent pool. | Recognizing that diverse demographics can fill gaps in the labor market and enhance skill sets. | 3 |
| Immigration Policy Impacts | Calls for changes in immigration policy to bring more workers into construction roles. | From limited workforce pools to advocating for broader immigration reforms to fill labor gaps. | In a decade, favorable immigration policies could significantly alleviate labor shortages in construction. | The demographic shift in the U.S. necessitates a reevaluation of immigration to sustain workforce levels. | 5 |
| Infrastructure Investment vs. Labor Supply | Infrastructure funding is available, but there is a lack of investment in recruiting and training workers. | From abundant funding for projects to a critical mismatch with workforce availability for execution. | In 10 years, infrastructure projects may be stalled or under-delivered due to persistent labor shortages. | Financial allocations prioritize project funding over workforce development, exacerbating labor issues. | 4 |
| name | description | relevancy |
|---|---|---|
| Labor Shortage in Construction | A significant shortage of workers in the construction sector, impacting the ability to meet growing infrastructure demands. | 5 |
| Cultural Perception of Construction Jobs | Negative societal perceptions of construction work discourage new generations from entering the field, exacerbating labor shortages. | 4 |
| Aging Workforce | An aging labor force in construction leads to early retirements and a lack of younger workers entering the industry. | 4 |
| Impact of Immigration Policy | Restrictive immigration policies hinder the recruitment of foreign labor, worsening the construction labor shortage. | 4 |
| Increased Project Delays | Supply chain disruptions and labor shortages lead to project delays and inefficiencies in construction timelines. | 4 |
| Materials Pricing and Availability | Skyrocketing prices and prolonged delays for construction materials create additional challenges for the industry. | 4 |
| Safety Concerns | The high rate of occupational fatalities in construction continues to deter potential workers from seeking jobs in the field. | 4 |
| Training and Recruitment Investment Gap | Insufficient investment in training and recruitment for the construction workforce could lead to long-term industry labor crises. | 5 |
| name | description | relevancy |
|---|---|---|
| Increased Pay for Construction Workers | Construction workers are experiencing a significant rise in wages, making the sector more attractive despite ongoing labor shortages. | 4 |
| Focus on Youth Engagement | Construction firms are building relationships with schools to expose students to job opportunities in the industry. | 5 |
| Diversity Initiatives | Efforts to increase the representation of women and other underrepresented groups in the construction workforce are gaining traction. | 4 |
| Immigration Policy Advocacy | There is a growing call for reforming immigration policies to allow more workers into the construction industry to alleviate labor shortages. | 5 |
| Cultural Shift in Career Perception | Changing perceptions about construction jobs as viable and rewarding career paths is necessary to attract younger generations. | 5 |
| Training and Apprenticeship Programs | Organizations are developing pre-apprenticeship and training programs to prepare new workers for construction jobs. | 5 |
| Adaptation to Supply Chain Disruptions | Construction firms are navigating delays in material supplies and adjusting project timelines accordingly. | 4 |
| Use of Technology for Labor Gap Solutions | Exploration of technology to help close the labor gap in the construction industry is on the rise. | 3 |
| name | description | relevancy |
|---|---|---|
| Construction Automation | Technologies that automate construction processes, improving efficiency and reducing the reliance on manual labor. | 5 |
| Digital Training Programs | Online platforms and virtual training to attract and train new workers in the construction industry. | 4 |
| Pre-apprenticeship Programs | Programs designed to prepare individuals for apprenticeship roles in construction, focusing on skill development. | 4 |
| Diversity Recruitment Initiatives | Efforts to increase the participation of women and underrepresented groups in the construction workforce. | 4 |
| Temporary Work Visa Programs | Policies to facilitate the entry of foreign workers into the U.S. construction industry to alleviate labor shortages. | 4 |
| Technology for Remote Work and Communication | Tools that enable remote collaboration and communication in construction projects, enhancing project management. | 3 |
| Supply Chain Management Technologies | Innovations that improve the procurement and management of construction materials, reducing delays. | 4 |
| name | description | relevancy |
|---|---|---|
| Labor Shortage in Construction | The construction industry faces a significant labor shortage, with an estimated 650,000 workers missing, impacting project completion and economic growth. | 5 |
| Changing Work Culture Perception | A cultural shift has led to decreased interest in construction careers among youth, influenced by societal messages favoring college education over trades. | 4 |
| Aging Workforce and Retirements | An aging labor force in construction leads to increased retirements, exacerbating the existing labor shortage in the industry. | 4 |
| Supply Chain Disruptions | Construction materials face severe supply chain delays, impacting project timelines and costs, with prices rising significantly since the pandemic. | 4 |
| Need for Workforce Diversification | Increasing the representation of women and minorities in construction could alleviate labor shortages by expanding the talent pool. | 4 |
| Immigration Policy Impact | Construction industry labor shortages may be alleviated by revising immigration policies to allow more foreign workers into the sector. | 5 |
| Investment in Worker Training | There is a pressing need for increased investment in training programs to attract and prepare new workers for the construction industry. | 5 |
| Impact of Infrastructure Investment | Biden’s infrastructure bill highlights the contrast between available funding for projects and the lack of funding for recruiting and training workers. | 5 |