Why Are There Worker Shortages? Here Are Four Explanations

There are continual headlines announcing worker shortages in the construction industry all across the country. Business owners and firms everywhere report that they are having a hard time filling jobs. As a result, this worker shortage is slowing new construction down while driving prices up, and generally making it hard for first-time buyers to get into a new home.

According to Construction Dive's recent newsletter, there are four major factors contributing to this shortage:

1. A Lack of Young People

Many young workers are joining the tech world - even if it means making less money than they would working in construction - with the hopes of being the next Mark Zuckerberg.

Tara Sinclair, chief economist at Indeed.com, said one of the main obstacles to attracting millennial workers is the heightened pressure for young people to obtain a college degree, even if that isn't the best option for certain students. "People are making those career path plans at a very young age and aren't necessarily exploring those career options that might be a better fit for them… They're looking for long-term career paths. I think we want to show them it's not just a one-time thing," she said.

2. Misconceptions

With so many young people being steered toward college degrees, there is a misconception that the trades aren't as respected as white collar jobs. "As a society, we have denigrated the nobility of the trades," Chris Terrill, CEO of HomeAdvisor, said. "Why shouldn't the trades be a good place to go? I think there's a perception that some of the trades is backbreaking. A huge part of it is using your mind. There are a lot of misperceptions."

This is more of a cultural problem than anything.

3. Lack of Female Workers

Did you know that women represent less than 3% of workers in the construction industry? While there are plenty of jobs in the industry for women to do, there is a lack of female mentors and a "boys club" perception. Some women fear being harassed by their male counterparts, who have a reputation for locker room humor.

4. Decline in Immigration

Many Mexican-born workers left during the recession and returned to Mexico.

Several solutions were discussed, including marketing, education and training, and immigration reform. The biggest perhaps, was to form a coalition of people from all facets of the industry, including realtors, carpenters, construction firms - to come together to drive real change. "The industry will have to recognize that you just can't complain about it, you have to do something about it," said Stephen Sandherr, AGC CEO.