The U.S. needs 7 million more houses, but who will build them? The construction industry needs trained laborers.

Photo by Arron Coi, Unsplash

As the construction industry struggles to meet the demand for new housing, it faces big obstacles, including a shortage of trained labor. Robbie Sequeira of Stateline reports, "The U.S. construction industry lost nearly 30% of its workforce during the Great Recession of 2008 and had barely recovered before the Covid-19 pandemic hit it again, as outlined by a study shared last spring by economists at the University of Utah and the University of Wisconsin. . . . However, the authors attributed much of the shortage to the federal Secure Communities immigration crackdown of the Obama administration."

An estimated 7 million more homes are needed, so the industry must find more trained workers to meet demand. "Employment isn't growing fast enough, said Erika Walter, director of media relations for Associated Builders and Contractors, a national industry group," Sequiera writes. "An analysis released earlier this month by the group found that at the end of November, there were about 459,000 job openings in the industry. The 5.4% job opening rate was the highest since 2000."

To attract new labor, the industry needs to address its hiring practices. Sequeira reports, "According to a 2022 Department of Labor report, many apprentice programs for construction and trade-based skills often have sponsors who do not recruit or hire individuals from underrepresented groups — and may not even be aware of how to recruit members of those groups."

If recruitment and training shortages aren't managed, the shortage will intensify as aging workers retire. Sequiera notes, "More than 1 in 5 construction workers are 55 and older, and much of the workforce will be retiring in the coming decade, according to the Bureau of Labor Statistics." Karl Eckhart, vice president of intergovernmental affairs for the National Association of Home Builders, told Sequiera, "We need to expedite the [recruitment and training] process so we can at least get shovels under the ground."

Several states are intervening to assist in training a new construction workforce, including Montana, New York, Ohio and Maryland. "Ohio Republican Gov. Mike DeWine announced that 35 Ohio high school programs would receive almost $200 million in grant money to expand training facilities in areas including the electrical trades, welding and carpentry," Sequiera reports.