We had the highest number of construction jobs available in August 2022 – 407,000 – since 2012. We also had more workers quit construction jobs in August. This is according to an October 2022 ABC (Associated Builders and Contractors) analysis of data from the U.S. Bureau of Labor Statistics (BLS). Construction industry job openings increased by 54,000 last month and are up by 45,000 from the same time last year.
“The overall number of job openings economywide fell to 10.1 million, its lowest level since June 2021,” said ABC’s chief economist Anirban Basu. He said this is good news for real estate and construction. “Any evidence of weakening economic momentum brings us closer to the point when the Federal Reserve can stop ramping up borrowing costs.”
In August 2022, more job openings were unfilled since the BLS began tracking construction jobs in 2001. And fewer workers were laid off or fired than those that quit construction jobs.
Why are they quitting in record numbers?
It’s tempting to think the labor shortage is due to low pay. But it isn’t about money, says constructutopia.com. Pay is important, but it ranks lower than education, training, and opportunities. In a survey conducted by Building Talent Foundation, 53% of construction workers said they stay in a construction job because they have opportunities to develop their skills and advance their careers. In its June market report, the Home Builders Institute said we need to hire 2.2 million additional construction workers by 2024.
Encouraging employees to be company-committed and excited about career opportunities isn’t new to other industries. It’s time we understand how much we stand to gain from developing a better workplace culture for construction workers.
- Productivity – This key business performance measurement goes up when employees are engaged.
- Profits – Better communication, fewer reworks, and lower employee turnover increase profits.
- Turnover – It can cost as much as $15,000 to replace a worker and retrain another.
When your company is forward-thinking and technology-savvy, you’ll have an edge in the talent competition market. You’ll create more construction jobs when you have a dynamic lead development team.
Find out how. Contact Construction Monitor.