EHS Today
  • Magazine Subscription
  • ENewsletters
  • EHS Education
  • Safety Leadership Conference
  • America's Safest Companies
    • Search
  • EHS Today Intelligence
  • Safety
  • Health
  • Environment
  • Standards
  • Safety Technology
  • Training & Engagement
  • Leadership
  • Topics
    EHS IntelligenceEnvironmentHealthSafetyLeadershipStandardsConstructionPPESafety TechnologyTraining & EngagementEmergency ManagementCOVID-19 CrisisIndustrial Hygiene
    Resources
    Member BenefitsSafety Leadership ConferenceEHS EducationAmerica's Safest Companies AwardsWebinarsWhite PapersWorkplace Safety AcademyMagazine SubscriptioneNewsletter SubscriptionLatest HeadlinesContact UsAdvertisePress ReleasesPrivacy & Cookie PolicyTerms of Service
    https://www.facebook.com/pages/EHS-Today/66542218626?ref=ts
    https://www.linkedin.com/groups/4355311
    https://twitter.com/EHSToday
    © Jackbluee | Dreamstime
    Construction Workforce Shortage Tops Half a Million in 2023
    1. Construction

    Construction Workforce Shortage Tops Half a Million in 2023

    Feb. 20, 2023
    In 2022, there were more than 390,000 job openings per month, the highest level on record.
    EHS Today Staff

    Like every other industry, worker shortages are an issue in the construction industry.

    A recent model developed by Associated Builders and Contractors found that the industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor.

    “The construction industry must recruit hundreds of thousands of qualified, skilled construction professionals each year to build the places where we live, work, play, worship, learn and heal,” said Michael Bellaman, ABC president and CEO, in a statement. “As the demand for construction services remains high, filling these roles with skilled craft professionals is vital to America’s economy and infrastructure rebuilding initiatives.”

    Construction

    ABC’s model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s Construction Put in Place survey, as well as 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 3,620 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 embodied within computations.

    Retirement Continues

    Job openings continue to raise as the industry averaged more than 390,000 job openings per month in 2022, the highest level on record.

    Added to that is the industry unemployment rate of 4.6% in 2022, which was the second lowest on record, higher than only the 4.5% unemployment rate observed in 2019. National payroll construction employment was 231,000 higher in December 2022 than in December 2021.

    “Despite sharp increases in interest rates over the past year, the shortage of construction workers will not disappear in the near future,” said ABC Chief Economist Anirban Basu, in a statement. “First, while single-family home building activity has moderated, many contractors continue to experience substantial demand from a growing number of mega-projects associated with chip manufacturing plants, clean energy facilities and infrastructure. Second, too few younger workers are entering the skilled trades, meaning this is not only a construction labor shortage but also a skills shortage.

    “With nearly 1 in 4 construction workers older than 55, retirements will continue to whittle away at the construction workforce,” said Basu. “Many of these older construction workers are also the most productive, refining their skills over time. The number of construction laborers, the most entry-level occupational title, has accounted for nearly 4 out of every 10 new construction workers since 2012. Meanwhile, the number of skilled workers has grown at a much slower pace or, in the case of certain occupations like carpenter, declined.

    Filling the Gap

    “To fill these important roles, ABC is working hard to recruit, educate and upskill the construction workforce through our national network of more than 800 apprenticeships, craft, safety and management education programs—including more than 300 government-registered apprenticeship programs across 20 different construction occupations—to build the people who build America,” said Bellaman. “ABC members invested $1.6 billion in 2021 to educate 1.3 million course attendees to build a construction workforce that is safe, skilled and productive.”

    In 2024, the industry will need to bring in more than 342,000 new workers on top of normal hiring to meet industry demand, and that’s presuming that construction spending growth slows significantly next year.

    Continue Reading

    NIOSH Advice on Supporting an Aging Workforce

    Labor Skills Needed Today and Tomorrow

    Sponsored Recommendations

    Is Your Safety Program Effective? 10 Questions Every Safety Leader Should Ask

    Nov. 7, 2023

    Purposeful Presence: How Leaders Show Up to Amp Up Performance

    Nov. 7, 2023

    The Truth and Challenges of Cultivating Chronic Unease

    Nov. 7, 2023

    Autopsy of an Injury Uncovering 18 Million Exposures in One Activity

    Nov. 7, 2023

    Voice your opinion!

    To join the conversation, and become an exclusive member of EHS Today, create an account today!

    I already have an account

    New

    Making Naloxone Part of Emergency Preparedness Plan

    The ROI of Visual AI for HSE - Unlocking the Power of Data

    Clear Vision: Safeguarding Construction Workers' Eyes on the Job

    Most Read

    OSHA’s First Aid Requirements: FAQs – Answered!

    The ROI of Visual AI for HSE - Unlocking the Power of Data

    Ohio Train Derailment: What Went Wrong?


    Sponsored

    How is ROI measured in safety? Tools and strategies to calculate impact

    Above and Beyond: Rising to the Challenge of SIF Prevention in the Utility Industry

    Tackling Emerging Occupational Health Challenges With Technology

    EHS Today
    https://www.facebook.com/pages/EHS-Today/66542218626?ref=ts
    https://www.linkedin.com/groups/4355311
    https://twitter.com/EHSToday
    • About Us
    • Contact Us
    • Advertise
    • Do Not Sell or Share
    • Privacy & Cookie Policy
    • Terms of Service
    © 2023 Endeavor Business Media, LLC. All rights reserved.
    Endeavor Business Media Logo