Labor Shortage, but More Projects Expected in 2020?

Construction employment saw another increase in total jobs in December of approximately 20,000 and a total of over 150,000 for 2019, representing a 2% increase from 2018 according to a study completed by the Associated General Contractors of America.  Another interesting stat from the survey includes three out of four contractors expect to continue to add workers throughout 2020 even though there was a shortage in 2019 and expect it to be even harder to find qualified employees in 2020.  The unemployment rate for experienced construction workers is the lowest ever in the 20-year history of the survey.

Over the course of 2019, construction employees’ average hourly earnings increased by approximately 3%, driven by companies increasing the base pay rates for hourly craft workers due to difficulties in attracting skilled laborers.  The Associated General Contractors of America have taken a few different steps to combat these labor shortages, with the increase in pay, as well as becoming more efficient.   Contractors believe that there will be an increase in overall projects in 2020 and that the key will be to bid the projects correctly.  Companies have started to increase their rates in bids as well as put in a longer completion time, which has helped them to recoup some of the additional costs associated with the labor shortage.

The main focus for contractors as we head into 2020 is on the recruiting front, as they hire new workers and attempt to get federal and state officials to increase funding for technical education, which could lead to significantly more programs geared towards recruiting and equipping students who might be considering the construction industry for their future.  Will that happen?  All we can do is wait and see, but the overall outlook for 2020 is positive, with more growth anticipated.

If you have any questions don’t hesitate to contact us or check out the Schneider Downs Construction Industry Group.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Postcard from the 38th annual AICPA & CIMA Construction and Real Estate Conference
Construction, ESG BY Matt Hartman
ESG in the Construction Industry: Electrification
“Constructing” Your Estate to Meet Your Needs
New Research and Development Capitalization Requirement Shuffles System
Contractors May Benefit From SALT Cap Workaround
Construction Talent Retention
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×