Category: Worker Shortage

How Labor Shortage Affects Contractors

Labor ShortageAs you likely know, we in the United States have what is known an entertainment and knowledge economy. Most of the jobs that are available are in the education sector, or they are meant for people who entertain and amuse others in the world around them. Because of that, a lot of people have started to go to school for such things, or they just go into a career when they get out of high school. That being said, the issue has come that there are a lot of people who are unemployed in those sectors, but then there are tons of skilled labor jobs that are left empty because there is no one with the skills to fill them.

How does this affect you? Well, it depends. If you’re a contractor that regularly needs to work with others in order to get the job done, then you may notice that your list of contacts has gotten a lot smaller as time has gone on. You may only know one or two people who work in certain areas of expertise, such as handmade rings making, and they likely have very busy schedules that make it difficult for them to get to everything that they need to do because of this shortage.

It could also mean that rates are a lot higher for you, and you have to split more of what you make with the people that come and help you out. This can make things especially difficult for you, because suddenly, you aren’t making as much as you used to. Then, your prices may have to go up, which could further reduce the amount of work that you’re getting on a regular basis. It’s a cycle that ends up making it more difficult for the average person to achieve their home goals.

Have you started to a notice a difference since there have been fewer laborers working in specialized areas, or is it something that has not really affected you? It may affect some places and people more than others, so it’s an important thing for us to keep in mind and explore as time has gone on. Have you found ways around it, or have you just been modifying your work in order to try and keep up with everything that is going on with it? Let us know how you’ve coped with this change in the comments.

The Construction Worker Shortage: Is it True?

The Associated General Contractors of America released a survey several months ago that said there’s trouble in the forecast. It seems that as many as 83% of construction companies are underemployed, and finding new team members qualified for the job is getting more and more difficult. But is this actual information? Some say differently.

construction workersConstruction workers are out there, says economic data, but they’re simply waiting for things to pick up once again. When the housing crisis occurred in 2006 – 2007, many laid-off workers went into other industries. Some retired, and others simply remained unemployed. It is perceived that it is these factors that are contributing to the proposed shortage of available construction workers. Furthermore, it is not anticipated that a shortage in construction workers will affect any business out there.

Sure, there could be a few open spaces thanks to those who chose not to come back to the same industry. However, that affects just one sector of construction, i.e. plumbing, a roofer, etc. rather than the industry as a whole. Even still, the numbers of projected open positions overall is relatively low. The construction worker unemployment rate has increased only by 1.7% since 2006, standing today at 7.8%. Only with an exceedingly number of additional job openings would there be a shortage of workers.

In addition, there would be additional signs that there was a shortage in workers. For example, the wage rate would be indicative of a shortage. Yet, it remains steady, with the average hourly wages steady even since 2006. Some sectors of the construction industry have even increased wages considerably since this time. For example, drywall contractors earned an average hourly wage of $22 in 2006, compared to an average hourly wage of $28 in 2015.

Some states are seeing a slight decline in the number of construction workers, but only four states. Those states include Oklahoma, North Carolina, Louisiana and Iowa. Even in these states those rates are not high enough to cause any substantial worry.

So, why are there reports that there is a shortage of construction workers if this is really not a problem? Perhaps it is those isolated shortages in some sectors of construction that have caused the uproar. Perhaps construction workers are working through employment agencies or as temporary workers, accumulating for those higher than average numbers. These factors do not signal a problem that the world should be concerned about however, at least not yet.