America is a land of opportunity, and nowhere is that more apparent than in the construction industry. It’s the classic American story: someone can start on the ground floor (literally) and work their way into a highly technical profession (or management, or entrepreneurship, or all the above). The challenge is connecting job seekers to those opportunities during a time of low unemployment and workforce shortages. Fortunately, the construction industry is collaborating with governmental and educational institutions across the country to address this critical issue and ensure skilled workers are available to build, maintain and expand manufacturing facilities.
The U.S. labor force has grown by more than 24 million workers in the past 10 years. America’s job-creation engine is going strong, and the unemployment rate is low. However, the relative scarcity of workers is making it difficult for employers to fill open positions (which are rapidly multiplying).
The situation is evident in the construction industry. Construction added 228,000 workers between March 2017–18, and more are needed. The U.S. Bureau of Labor Statistics has looked at several construction-related job categories and sees continued job creation between 2016–26:
These numbers don’t include all the jobs that will need to be filled as the baby boomer generation leaves the workforce. Earlier this year, the Bureau of Labor & Statistics estimated the number of current job openings in construction at nearly 200,000. Similarly, a recent report published by the Conference Board, a 501 nonprofit research organization, found the construction industry faces a projected job shortage of more than 90 percent. A nagging labor shortage can lead to higher construction costs and delayed completion time for projects.
In September of 2017, Congress overwhelmingly passed a reauthorization of the Perkins Act. This act is designed to improve career and technical education (CTE) in the United States. The workforce development legislation reauthorizes and reforms the Carl D. Perkins Career and Technical Education Act, originally passed by Congress in 1984. It will provide more Americans with the education and skills they need to compete for high-skilled, in-demand jobs in the construction and manufacturing fields. The new legislation is designed to ensure career and technical education is flexible enough to adapt to the needs of emerging industries.
On June 14, 2018, the White House announced its efforts to encourage action in the U.S. Senate to reauthorize the Perkins Act after months of stalled negotiations in a statement from Deputy White House Press Secretary Hogan Gidley.
“The important legislation benefits more than 11 million Americans across the country and is integral to the administration’s working families and work-force development agenda,” Gidley said.
CTE programs are a critical means of preparing students for successful careers by bridging the gap between high school and post-secondary education and training. Throughout recent history, our education system has focused more on preparing high school students for college, and less on vocational programs that can lead to rewarding careers in the skilled trades. In fact, many students are never exposed to careers in the skilled trades.
A key feature of the new legislation is the ability of the states to have flexibility in using federal resources to develop programs that are tailored to the specific needs of companies in their communities. In addition, the legislation will improve alignment between in-demand jobs and learning opportunities through employer engagement and community partnerships. CTE programs will be focused on work-based learning programs, employability skills, and credentialing. Students can earn their post-secondary training, while working, through a registered apprenticeship or craft training programs, and avoid student loans and high debt.
If jobs are to be filled, industry organizations must play an active role, identifying sources of untapped talent then taking part in training efforts. Several strategies are already in place and gaining momentum:
There’s a lot going on to ensure the construction industry can meet the needs of a growing national economy, but there’s more to be done. And there’s a role for all stakeholders in the process, whether it’s hands-on support of specific initiatives or advocating for the many career opportunities available in construction.