Tackling the Issue of Workforce Demand
By Boyd Worsham, LEED AP | Originally posted on metalarchitecture.com
The industry needs to work together to build awareness of construction careers
Workforce fluctuations are true for any industry. The construction industry is no exception with its ever-changing disposition. With the occurrences of the last few years being unparalleled, this statement rings true even more so. The balance of the construction workforce demand is currently up in the air with both positive and negative trajectories.
According to the Associated General Contractors’ (AGC) data analysis, 31,000 jobs were created between October and November in all construction sectors in 2021. This is most likely due to the bounce back from the declines that were caused by the pandemic as well as progression on upcoming federal infrastructure investments.
Another key to combatting and preventing further workforce imbalances in 2022 is to minimize the outsourcing of work. If too much work is outsourced prematurely, it leaves less work for potential new entrants into our industry as well as decreases work for our current workforce.
If too much work is outsourced prematurely, it leaves less work for potential new entrants into our industry as well as decreases work for our current workforce.
Boyd Worsham, LEED AP, CEO and President of the National Center for Construction Education & Research
Additionally, the Associated Builders and Contractors (ABC) is experiencing similar findings in workforce data and trends. While growth is anticipated, there is also the possibility of stagnation. ABC reported that the unemployment rate in the construction industry rose to 4.7% in November 2021. On top of this, contractors are having difficulty hiring. Even though these problems don’t pair well, according to ABC chief economist Anirban Basu, “… the labor force participation rate rose to 61.8% from 61.6% …” which is heartening news.
It is important to be prepared to react to changing conditions of the industry, and to do so decisively. The inevitability of fluctuations in workforce demand should motivate all of us in this industry to tackle the issue head on. As an industry, it is vital that we create an awareness of construction industry careers and actively recruit talent for those careers. If we could focus on that at the contractor level and at the owner level, I truly believe we could solve this problem sooner rather than later.
As an industry, it is vital that we create an awareness of construction industry careers and actively recruit talent for those careers
Boyd Worsham, LEED AP, CEO and President of the National Center for Construction Education & Research
Recovering from the year 2020 is about focusing on the small victories. Speaking of which, the Construction Labor Market Analyzer (CLMA) shows that month-to-month growth rate of jobs in the industry is averaging from 0.6% to 0.8%. This is due, in part, to the 67.5% of jobs lost at the beginning of the pandemic being recovered.
The past few years have paved the way for workforce development to evolve and change the way construction professionals get to do what they love. More flexible benefits and working situations as well as an emphasis on mental health and attention to employee needs came to the surface as we have taken a step back and learned from the industry’s current state. It is important for us to continue to move forward and strive for excellence in the coming years and beyond.
