There are so many reasons why the Offsite Construction Industry can’t seem to get enough skilled labor to meet the demand for new homes and affordable housing projects. If you’re lucky enough to find and hold onto new employees, you must share your recipe with others in our industry.
During the Baby Boomer era, women made their way into the workforce in greater and greater numbers, and massive household wealth gains were achieved.
However, the impact of Baby Boomers on the labor market began to change in the early 2000s, when its older members started to reach retirement age. Eventually, as more and more exited the workforce, labor force participation began to drop, and the number of prime-age men in the workforce steadily plummeted. The perfect storm had begun to take shape.
Now, two years after COVID-19 decimated the job market, job openings in the U.S. have jumped 43% — from 7 million to 11 million. There are several reasons why we still aren’t attracting new employees:
- Misalignment – Available job opportunities don’t always match up very well with the skills, demographic traits and preferences of those who are looking for work.
- Immigration – With immigration sinking to record lows on the heels of a steady decline for several years, relying on talent from abroad as a source of labor isn’t as viable of a solution as it’s been in the past.
- The CARES Act – Up to $2 trillion was added to consumers’ pockets with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed by Congress and signed into law on March 27, 2020, in the wake of the economic fallout that occurred in the opening weeks of the COVID-19 pandemic. The influx of cash allowed certain people to finance their way out of the labor force.
- Accumulated wealth and retirement – Income soared in the United States for all groups between 2019 and 2021, leading many people to finance their way out of the labor force (permanently or for an extended period of time).
- Opioids and overdoses – The rate of overdose deaths in the United States, particularly among males, continues to rise. Its impact on the available pool of labor talent can’t be overlooked.
- An increase in self-employment – New business applications jumped significantly during the pandemic, as more and more people opted to leave the labor force and go into business for themselves.
- Work from home – Depending on the industry, up to 46% of employees are now working from home. The question then becomes would they join an employer that doesn’t offer ‘work from home’ even with a pay increase?
Related Articles:
- Is The Offsite Industry Falling Behind On The Labor Shortage Issue?
- Are Boomers To Blame For Skilled Labor Shortage?
- Women Continue To Be The Key To Offsite Construction’s Labor Shortage
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
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