Construction needs more than half a million workers to meet demand in 2022

An analysis released Feb. 23 by Associated Builders and Contractors indicates the construction industry needs 650,000 workers beyond its current pace of hiring to meet demand in 2022, according to www.constructiondive.com.

ABC found for every $1 billion in additional construction spending, construction gains 3,900 jobs; considering massive upcoming infrastructure spending, the industry is expected to need a lot of workers.

ABC Chief Economist Anirban Basu said the workforce shortage is the “most acute challenge” the industry faces.

“After accounting for inflation, construction spending has likely fallen over the past 12 months,” Basu said. “As outlays from the infrastructure bill increase, construction spending will expand, exacerbating the chasm between supply and demand for labor.”

According to the analysis, an estimated 1.2 million construction workers will leave for other industries in 2022, but an anticipated 1.3 million leaving other industries for construction will offset that departure. Still, the age of the workforce raises concerns as fewer young workers enter the industry and veterans retire. The number of workers ages 25-54 dropped 8% during the past decade and the number of older workers has increased proportionally.

“According to the Centers for Disease Control and Prevention, the industry's average age of retirement is 61, and more than one in five construction workers are currently older than 55,” Basu said.

The number of entry-level laborers has increased 72.8% since 2011, and the total number of workers has grown by less than 25%.

“The roughly 650,000 workers needed must quickly acquire specialized skills,” Basu said. “With many industries outside of construction also competing for increasingly scarce labor, the industry must take drastic steps to ensure future workforce demands are met.”

Date : Jan. 01, 0001