Shortage of Labor for Developers

Roughly 66% of contractors are having a difficult time finding quality labor that finishes jobs on time. There is simply not enough skilled craftsmen to go around. More than a third of contractors are having to decline job offers, all while increasing their prices. USG Corp. and the U.S. Chamber of Commerce took a survey and found that 3/4 of the contractors they surveyed are lacking skilled labor so bad, they are just asking their employees to work harder. Pretty much they are asking them to work harder in order to cope with the lack of skill available. 

The survey that took place was part of the development of new economic indicator launched in early June.  It was designed to measure trends like backlogs, revenue projections, access to financing, and labor issues.  

Of the contractors surveyed, 2/3 of them predicted more labor help would come in the next several months, but 61% of them said skilled labor like concrete masons, electrical, plumbing, etc. were terribly hard to find or book. There just isn’t enough qualified talent. 

Industry leaders are a bit worried for the future. The Trump administration has promised it will spend $1 trillion on new infrastructure, and industry workers can barely keep up with the work they have now. To spend that much on new work could surely make the situation even more dire. 

A big part of the shortage of labor is due to the amount of construction projects in the near future. From January tip April of this year construction spending amounted to $359.5 billion, which is 5.8% more than the same time of 2016. 

It didn’t help that thousands of skilled laborers left the market when the economic crisis hit. On top of that, even before the crisis, the labor market was aging. It was essentially like a large chunk of the labor market retired around the financial crisis. 

What will happen for the future? We will just have to wait and see.

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