Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Los AngelesA sever labor shortage will continue to plague the construction industry through 2019, driving up construction costs further. A recent report from the Associated General Contractors of America shows that 79% of construction companies want to hire more employees this year, but the industry is only estimated to grow its workforce by .5% annually for the next 10 years. That is hardly enough to make up for the 600,000 jobs lost since the last recession.

“A few factors are driving the construction labor shortage and lack of labor growth,” John Wagner, national construction director at global insurance brokerage firm Gallagher, tells GlobeSt.com. “For one, construction is not an attractive industry to millennials. In addition, 600,000 workers left the industry during the great recession and have not returned. One reason for this is that the healthcare and social working industries are attracting more workers than the construction industry. Finally, the United States is experiencing a slower population growth and an aging workforce.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

More from this author


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.