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Understanding the Demand for People in the Construction Business

In the construction industry, understanding the demand for skilled professionals is crucial for individuals seeking employment or planning their career path. This article aims to provide a simple and easy-to-understand review of the demand for people in the construction business in the United States.

I. Overview of the Construction Industry:

  • The construction industry plays a vital role in the economic growth and development of the United States.
  • It encompasses various sectors, including residential, commercial, industrial, and infrastructure construction.
  • Key players include general contractors, subcontractors, architects, engineers, and construction managers.

II. Factors Driving the Demand:

  1. Population Growth and Urbanization:
  • The increasing population and urbanization lead to a higher demand for housing, commercial spaces, and infrastructure development.
  • This drives the need for skilled professionals in construction.
  1. Aging Infrastructure:
  • Many existing structures, like bridges, roads, and utility systems, require repair, maintenance, and rehabilitation.
  • This creates a continuous demand for construction professionals to undertake renovation and infrastructure improvement projects.
  1. Technological Advancements:
  • The construction industry is embracing technological advancements such as Building Information Modeling (BIM), drones, and automation.
  • Skilled professionals who can adapt to

Job Outlook

Overall employment of construction laborers and helpers is projected to grow 4 percent from 2022 to 2032, about as fast as the average for all occupations. About 151,400 openings for construction laborers and helpers are projected each year, on average, over the decade.

Why are construction workers in high demand?

The lack of skilled laborers, coupled with the severe need for housing, means that California construction workers are guaranteed work. Despite the job security, high pay, and potential for building skill sets, the labor shortage continues to affect the construction market.

Is building construction in demand?

The construction industry averaged more than 390,000 job openings per month in 2022, the highest level on record, and the industry unemployment rate of 4.6% in 2022 was the second lowest on record, higher than only the 4.5% unemployment rate observed in 2019.

Who are the people needed in a construction company?

The construction of a building involves many people: Architects; Designers; Engineers; Contractors; Sub-Contractors all working together to meet the needs of the Client. These construction professionals are brought together for a specific construction project and then disbanded once construction is complete.

Are construction workers in demand in USA?

The demand for construction workers, however, still remains high. Last month's 363,000 job openings are still 10,000 more than the amount during the same period last year. The recent dip in labor demand has been attributed to continued inflation and higher interest rates.

Is there a shortage of construction workers in USA?

The nationwide demand for labor is dulling, but construction still faces a shortage of workers. Construction counted 363,000 job openings at the end of July, according to the Bureau of Labor Statistics, a decrease of 23,000 jobs from June.

Is there a skilled labor shortage in America?

About 1.4 million manufacturing jobs were lost during the COVID-19 pandemic but the industry was already facing a potential labor crisis — a projected 2.1 million unfulfilled jobs by 2030 resulting from a lack of skilled labor, according to a study by the Manufacturing Institute (MI).

Frequently Asked Questions

Is construction booming in USA?

Unpacking the Boom in U.S. Construction of Manufacturing Facilities. The United States has experienced a striking surge in construction spending for manufacturing facilities. Real manufacturing construction spending has doubled since the end of 2021 (Figure 1).

Is there a demand for construction workers in the future?

9—The construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors.

Where is the highest demand for construction workers?

In any event, BLS data shows that the states with the most construction jobs are: California — 663,570. Texas — 568,930. Florida — 398,060.

What is the demand of people in the construction business

Feb 3, 2023 — This increased demand is added to the current level of above-average job openings. Projected industry retirements, shifts to other industries 


What are the most in demand skills in construction industry?
The most in-demand tradespeople were:
  • Plumbers (11,928 vacancies)
  • Gas Engineer (9,873 vacancies)
  • Flooring Contractor (7,812 vacancies)
  • Painter (7,597 vacancies)
  • Carpenter (6,997 vacancies)
  • Window Cleaner (5,887 vacancies)
  • Joiner (5,729 vacancies)
  • Roofer (4,547 vacancies)
What is the job outlook for the construction industry?

Overall employment of construction laborers and helpers is projected to grow 4 percent from 2022 to 2032, about as fast as the average for all occupations. About 151,400 openings for construction laborers and helpers are projected each year, on average, over the decade.

What is causing the labor shortage?

How it works: Americans are getting older, and there are fewer younger people of working age. Add to that a tight labor market — unemployment in the U.S. is very low — and there simply aren't enough workers in the U.S. to meet demand. Some of these high-stakes shortages are about wages.

What is the demand of people in the construction buissness

What is causing the labor shortage 2023?

Businesses' difficulty hiring has been blamed on a gamut of ills: too-generous unemployment benefits, too many stimulus checks, not enough immigration, too many workers with long COVID, and, finally, simple laziness.

Why is there a demand for workers?

The demand for labor is an economics principle derived from the demand for a firm's output. That is, if demand for a firm's output increases, the firm will demand more labor, thus hiring more staff.

Is there really a labor shortage?

Is America facing a labor shortage? Yes. 4.7 million more job positions are available than people to fill them in the United States, and about 1.7 open jobs exist per unemployed worker.

  • Is there a decline in construction workers?
    • National payroll construction employment was 231,000 higher in December 2022 than in December 2021. “Despite sharp increases in interest rates over the past year, the shortage of construction workers will not disappear in the near future,” said ABC Chief Economist Anirban Basu.

  • What does the future look like for construction workers?
    • Workforce of the future

      McKinsey reports the “shortage of skilled labor and supervisory staff will only get worse. These are deep issues that require new ways of thinking and working.” It's clear there is no scarcity of skilled jobs in the construction industry, and the need is only expected to grow.

  • Why are the trades dying?
    • The big picture: Older workers in the skilled trades are retiring and not enough young people are training up to take their jobs as construction workers, plumbers, electricians and beyond. By the numbers: The construction industry faces a gap of a half million workers, according to Construction Dive.

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