The construction workforce is aging, and there aren’t enough workers to replace retirees. The workforce shrinks every year because of other industries; the benefits available to workers in other sectors are not available in construction. Many potential workers are looking towards the energy sector for employment. After the Great Recession, the oil industry became more successful in its efforts to attract professionals. These conditions are creating challenging conditions for the construction sector, and the labor shortage is changing the way this industry thinks about its workforce.
The Effects On The Construction Industry
A natural outcome of the labor shortage is a focus on recruiting efforts. Construction firms are trying to attract employees who may not think of the industry as a source of job opportunities. More women are applying for these jobs, and job training partnerships are promoting lucrative occupations. The efforts to cultivate interest in replacing retirees is one of the readily apparent consequences of the labor shortage, but there are efforts to encourage currently available workers to stay in construction.
Many companies are increasing their benefits package to hold onto their employees, and this trend shows no signs of slowing down. There aren’t enough replacements available to replace current workers; employers are having a hard time training new employees. Health care benefits and retirement plans are some of the improvements employers are adding to benefit packages. Although these benefits can help the industry slow down the labor shortage, the efforts to find new employees are going to become essential to the process. The current workforce is aging and keep their pace.
Long Term Effects
Some of the effects of a labor shortage are going to manifest in years. The industry is going to shift its focus towards lucrative projects, and construction companies are going to need to adjust to a smaller workforce. People are more likely to rent today, and home ownership is declining on a yearly basis. We’re going to see a shift towards hotels and apartment complexes in the long run. Another long-term effect of the labor shortage in the construction industry is in our politics. Immigration can provide more job applicants and help increase the number of workers. This trend is going to change the way politicians see this sector, and we’re going to approach politics from a different standpoint.