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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.”

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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.

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