Construction Labor Crunch Has Broader Impact

You here it time-and-time again; the United States will face a major labor shortage in the coming years. And the construction sector is starting to see an upcoming dilemma.

With construction demand remaining high and construction unemployment getting lower, the slowdown in monthly hiring probably has a lot more to do with a lack of workers than it does a lack of work. Overall the construction market appears robust and as long as most firms can find qualified workers.
— Ken Simonson, Chief Economist for the Associated General Contractors of America

According to research from the AGC of America, 70 percent of firms reported earlier this year that they are having a hard time finding qualified workers. Because of this, many employers are calling on elected officials to reform and increase funding for Career and Technical Education, enact immigration reform and take other steps for workforce development.

Now that labor shortages appear to be undermining construction employment, it is only a matter of time before the lack of workers impacts broader economic conditions.”
— Stephen E. Sandherr, AGCA Executive Officer

How does Minnesota rank?

Minnesota gained 4,700 constructions jobs from May 2015 to May 2016, ranking 19th in the country with a 4.1% increase. However, the state also lost 1,900 construction jobs within the past month.

For full analysis from AGC of America click here.

Dawnita Parmely