May 10, 2017
The construction sector reached its highest level of unemployment last month since late 2008. That labor shortage is squeezing CRE developers and contributing to increased costs of projects, says the Associated Builders and Contractors (ABC).
Shortages of electricians, carpenters and laborers is driving up labor costs 4% to 5% annually, contractors’ backlogs are piling up, and there’s still demand for 500,000 more workers.
ABC estimates if the $1-trillion infrastructure plan proposed by the White House is approved, more than 600,000 workers will be required, as well as money earmarked for training programs.
In April, nearly 4.2 million workers were employed by construction businesses, excluding single-family home building. The nonresidential construction segment’s record of 4.4 million workers was reached in February 2008.
Since then, many workers left the construction industry, as the country went through the downturn, and younger people simply aren’t choosing a career in construction.
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