Why Are Construction Layoffs on the Rise?
Download MP3 Overview of the Workforce Shortage:
- In recent years, the construction industry has faced a severe shortage of skilled tradespeople.
- General contractors, subcontractors, and builders struggled to find workers for essential tasks like sheetrock, framing, excavation, and roofing.
- This shortage caused project delays and increased costs, despite high salary offers.
Market Dynamics Impacting Construction:
- A reduction in the workforce coincided with a surge in construction projects, intensifying the labor shortage.
- The rise in interest rates and soaring house prices have recently dampened the demand for new construction projects, creating a shift in the industry.
Emerging Trends:
- As construction projects decline, a potential surplus of workers is emerging, leading to new dynamics in job availability and competition.
- Some workers report fewer job opportunities, while contractors and companies may find it easier to hire skilled tradespeople.
Questions to Consider:
- Are you a contractor or construction company now finding it easier to hire workers?
- Are you a tradesperson experiencing fewer job opportunities or increased competition?
- Is there still high demand in your region, or are market shifts noticeable?
Key Insights from Industry Articles:
- In states like Oregon and possibly others, the economic slowdown is beginning to affect construction job availability.
- Builders previously willing to offer rates as high as $80–$90/hour for skilled tradespeople still faced worker shortages, even at premium pay.
- Recent shifts indicate a possible balancing or oversupply of labor in certain areas.
Engage with Us:
Drop a comment to share your experiences as a tradesperson, contractor, or company in the construction industry. Let us know how these trends are impacting your work!
Drop a comment to share your experiences as a tradesperson, contractor, or company in the construction industry. Let us know how these trends are impacting your work!
