The Rise of the Construction Labor Crisis: What’s Causing It and Why It Matters
The construction industry has been facing a labor crisis for decades. The reality is that there are many reasons behind this crisis. The construction industry is particularly short of skilled tradesmen. These skilled tradesmen excel in specialized craftsmanship. Their skills are developed through high-quality apprenticeships. From lack of federal investment to economic issues, there is no single cause for the construction labor crisis.
Higher Education
College is more popular than trade schools. Since the 1960s, college enrollment has more than doubled. The federal government has contributed to this by encouraging people to attend college and major in STEM fields. School systems began focusing on the sciences and math, pushing the trades to the wayside. What school systems often fail to take into account is that many students will be unable to attend college due to costs or other factors. College students also have to deal with thousands of dollars in debt, whereas construction workers are paid while undergoing their apprenticeships and training. So, ensuring that students are aware of their options is important. As society shifted its viewpoints on trades, parents encouraged their children to get degrees. Although many trades can be just as lucrative as white-collar jobs.
Economic Problems
In the 1980s, new construction outpaced new construction labor. Especially in the skilled craftsmen segment. Additionally, although construction workers at the time were starting to get older, there were no replacements for the ageing workforce, and nearly half of these older workers chose to continue working. As the 1990s approached, contractors opted not to recruit new labor because they already had a highly skilled older workforce. Contractors did not want to put in the effort to recruit and train a younger workforce. This is still an issue today, with an aging labor force, but a lack of new workers with the same skill sets. Fortunately, we are seeing positive changes, as enrollment in construction apprenticeships among Gen Z has increased over the last several years.
Lack of Investment
One reason we are seeing shortages is a lack of federal investment. The federal government has not heavily invested in the trades. As a result, college-age people and parents do not view construction trades favorably.
Why It Matters: How the Construction Labor Crisis Negatively Impacts the Construction Industry
· Project Delays: Over 90% of contractors have reported having trouble finding qualified workers to fill positions, and the main cause behind construction delays is construction labor shortages.
· Economic Impact: The skilled construction labor shortage has led to a loss of over $10 billion.
· Aging workforce: As the skilled tradesmen are getting older, they are retiring. Unfortunately, there are not enough skilled young tradesmen to replace them.
· Decrease in Production: A study by the University of Denver found that the construction workforce shortage has led to a loss of 19,000 single-family homes in 2024.
Providing Resources
To prevent the continued loss of billions of dollars and project delays, it is crucial that programs, training, and apprenticeships are provided to able-bodied individuals. There are thousands of people looking for work and the chance to improve their lives. By providing people with career opportunities in construction, we are building a better future and ensuring no one gets left behind. The median annual salary for construction workers is $46,730, and they can earn as much as $75,560. Bridge Builders connects people from underserved communities to opportunities through mentorship and apprenticeships. We help people get involved in the ever-expanding construction industry and help people get back on track.
Works Cited
http://ascpro0.ascweb.org/archives/1999/chini99.htm
https://arcoro.com/resources/why-arent-young-people-going-into-construction
https://www.jchs.harvard.edu/blog/rebuilding-construction-trades-workforce
https://aic-builds.org/skilled-labor-shortage-construction/
https://www.nahb.org/blog/2025/10/hbi-labor-market-report
https://www.bls.gov/ooh/construction-and-extraction/construction-laborers-and-helpers.htm#tab-5