One of the most important parts of running a successful business is hiring the right people. However, that task becomes increasingly difficult as the unemployment rate decreases and fewer people are looking for jobs. What should you do when you cannot find the right employees to hire for your construction business? Learn about the causes of the skilled labor shortage and what you can do to fix its effects on your company.
Growing Concerns for Contractors
Generally speaking, most people view low unemployment rates as a positive sign of a prospering economy. However, rates in America have been so low in recent years that people within the industry are becoming alarmed; while low unemployment rates may signify a healthier country, it also becomes much more difficult to find people to employ since fewer people are searching for jobs. Many business owners and contractors have already voiced their concerns about the lack of skilled labor available on the market.
Most businesses in the construction industry have recently found themselves struggling to locate experienced, qualified workers with skills necessary to fill open positions. As the unemployment rate shrinks, so does the number of people looking for work. However, the demand for these kinds of workers is growing, but there are not enough people available. Thus, the lack of skilled people seeking employment is becoming one of the biggest challenges for companies.
Causes of the Shortage
So where exactly have all of the skilled workers gone? It seems as if there is a plethora of potential workers ready to jump at the opportunity to take on new jobs. However, the industry has not taken many actions regarding this fact.
For a while, companies always assumed that upon reaching retirement age, the older generation would leave its jobs. This did not particularly go as anticipated. Due to the increased healthcare costs, pension payment fees, decreasing social security, and some other things, many people who grow to the age of expected retirement are reluctant to leave their jobs.
There are other causes of behind the shortage, too. Many companies do not invest enough time and money into ongoing training projects, so people who need to learn and obtain the skills do not have the resources they need to do so. Also, the younger generations have been encouraged in the recent years to attend colleges and universities, and then to pursue skilled jobs following their education. However, many companies do not wish to hire younger workers due to an unwillingness to train them—so, in short, they do not have the workers they need, nor do they have the resources to train new ones.
Construction and Millennials
The construction industry is not advertised to millennials nearly as much as it should be. Even in schools, there is a lack of occupational education; students learn many different subjects, but rarely do they learn their application to the real world.
This becomes a major issue as people in the current workforce draw closer and closer to retirement; the unemployment rate is the lowest in a decade, so there are fewer people to hire. The lack of people to hire puts massive pressure on project managers, foremen, and developers because as the older generation of workers retires, nobody is available to take their place.