Labor Shortage has Major Impact on Building Industry
Builders, remodelers, and associates of all types frequently mention the labor shortage that they are currently experiencing or viewing on the horizon. In 2013, 53% of builders rated the issue as a significant problem. That number has grown every since where now in 2016, 76% of builders indicated that the expected cost and availability of workers to be a significant problem, making it the top business concern of the industry. (NAHB, Robert Dietz)
Sector employment is expanding, having added more than 612,000 jobs since the Great Recession. But the industry lost almost 1.5 million workers during and after the recession. Given flat existing-home inventory and positive housing affordability conditions, employment could grow faster if labor market conditions eased.
On top of recruiting employees to fill currently vacant positions, many employers will see an uptick in retirement in the coming years. The median age of a worker in the construction industry is 42. For this reason, local, state and federal governments are constantly working with employers to advocate and promote on behalf of career training and workforce development.
For full analysis from Robert Dietz, Chief Economist for NAHB visit here.